We tend to turn to professionals when it comes to needing advice with important things in life, such as doctors, dentists, accountants and the like. However a lot of us can be reluctant when it comes to seeking financial advice. People only use an independent financial advisor, or IFA, when they need something, and don't generally ask for their advice or expertise beforehand.
In case you don't already know, an independent financial advisor is someone who can advise you on financial issues but works independently of all financial organizations and institutions. They are employed by you, the customer. Although they often work on commission, this does not affect the advice they give you as they are obliged to give you the best advice for your particular situation. Furthermore, they must provide the justification for their advice in writing so that you can see and prove why it is that they have advised you in the way that they have. Inappropriate advice is very hard to give when it has to be documented in this way.
So what is it that Independent Financial Advisors give advice on then? Well basically any product within the financial market. That is to say, mortgages, life insurance, private pensions, savings plans. Some also deal with will writing and inheritance tax planning.
Now that's all well and good, I hear you say, but can I not get these products by simply taking a stroll down the high street on any given day. Yes you can, but the big difference is that an Independent Financial Advisor does not just sell these products. The companies sell the products, as such. If you require life insurance they will sell you life insurance but an IFA is there to advise you whether you actually require life insurance in the first place.
With an Independent Financial Advisor the basic procedure entails a face to face meeting. The IFA will firstly go through your present financial position, that's to say, what policies you presently pay into. They then will gauge how much risk you associate and are willing to forego on the various different areas within your financial plans. Once both of you have established what your financial requirements are, an assessment will be made of how much you can afford and also are willing to pay for the services associated with these needs.
They will also find out what you want from your future financial planning, this will include questions such as when do you want to retire how long do you want to pay your mortgage for and do you want to protect yourself in the event of sickness etc.
By doing this they can build a personal profile of where you are and where you would like to be financially. Armed with this information they can then go and find the products on the market that will be of best value and benefit for you and your budget.
They will then come back to you and see if you think that the solutions fit your purposes. If you are happy with their proposals then they can proceed to put the financial plan in place for you.
You may think that this is the end of the process, but you would be wrong. It is also the job of an independent financial advisor to keep in contact with you every year to make sure that the services you have are still what you need. Circumstances change, and in doing so, the type of financial cover you have will also naturally shift. It is important to have a financial health check every so often to make sure you are properly protected.
So it can be seen that the role of an Independent Financial Advisor is one that is vitally important with your regards to your financial wellbeing. They assess where you are financially, structure a plan to best suit your needs, source the products that best suit you financially, and are on hand in the future if you need to reevaluate your position due to changes in circumstances both personally and in general. You have to agree that this is the sort of professional advice that is well worth seeking out.
In case you don't already know, an independent financial advisor is someone who can advise you on financial issues but works independently of all financial organizations and institutions. They are employed by you, the customer. Although they often work on commission, this does not affect the advice they give you as they are obliged to give you the best advice for your particular situation. Furthermore, they must provide the justification for their advice in writing so that you can see and prove why it is that they have advised you in the way that they have. Inappropriate advice is very hard to give when it has to be documented in this way.
So what is it that Independent Financial Advisors give advice on then? Well basically any product within the financial market. That is to say, mortgages, life insurance, private pensions, savings plans. Some also deal with will writing and inheritance tax planning.
Now that's all well and good, I hear you say, but can I not get these products by simply taking a stroll down the high street on any given day. Yes you can, but the big difference is that an Independent Financial Advisor does not just sell these products. The companies sell the products, as such. If you require life insurance they will sell you life insurance but an IFA is there to advise you whether you actually require life insurance in the first place.
With an Independent Financial Advisor the basic procedure entails a face to face meeting. The IFA will firstly go through your present financial position, that's to say, what policies you presently pay into. They then will gauge how much risk you associate and are willing to forego on the various different areas within your financial plans. Once both of you have established what your financial requirements are, an assessment will be made of how much you can afford and also are willing to pay for the services associated with these needs.
They will also find out what you want from your future financial planning, this will include questions such as when do you want to retire how long do you want to pay your mortgage for and do you want to protect yourself in the event of sickness etc.
By doing this they can build a personal profile of where you are and where you would like to be financially. Armed with this information they can then go and find the products on the market that will be of best value and benefit for you and your budget.
They will then come back to you and see if you think that the solutions fit your purposes. If you are happy with their proposals then they can proceed to put the financial plan in place for you.
You may think that this is the end of the process, but you would be wrong. It is also the job of an independent financial advisor to keep in contact with you every year to make sure that the services you have are still what you need. Circumstances change, and in doing so, the type of financial cover you have will also naturally shift. It is important to have a financial health check every so often to make sure you are properly protected.
So it can be seen that the role of an Independent Financial Advisor is one that is vitally important with your regards to your financial wellbeing. They assess where you are financially, structure a plan to best suit your needs, source the products that best suit you financially, and are on hand in the future if you need to reevaluate your position due to changes in circumstances both personally and in general. You have to agree that this is the sort of professional advice that is well worth seeking out.
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