Independant Financial Advisors
The meaning of
independent financial advice
Who’s looking out for your money?
The burgeoning choice of financial products on the market – more
than 30,000 (source IMA, DTI, AKG) at the last count – can be
daunting and lead many people to leave their money languishing
in the wrong place.
Yet when headlines present a bleak picture of our financial
future if we don’t start saving more wisely for our retirement,
right now, then it’s clear we should be doing more about putting
our money through its paces.
Whatever you want Independant Financial Advisors will help you find it
Whether you’re looking for the best way to
save for retirement, a
mortgage, advice on how to invest for the future or protect
yourself and your family with a
life assurance policy, the most suitable product for you is
almost certainly out there. It’s simply a case of how to find
it.
Now, perhaps more than ever, it is important to get sound,
unbiased advice on what financial products you should have,
especially those of us who are too busy or who lack the
confidence to search the market on our own. If you are wondering
what sort of advice is out there, where and how to find it and
how much it will all cost, read on.
Seeking financial advice? Independant Financial Advisors
There are currently three main ways of seeking financial advice
for products such as
life assurance,
pensions and collective investments like unit trusts/OEICs,
Individual Savings Accounts and Child Trust Funds; either
through an
independant financial advisor, a multi tied
agent or a tied agent.
The big advantage of
independant financial advice is that you
have access to all the products on the market through a
qualified practitioner. An IFA’s job is to research and
recommend the most appropriate financial solutions after asking
their clients a whole range of detailed questions about their
circumstances, their financial goals and their attitudes to
risk. IFAs are answerable to the FSA to ensure that they keep to
the rules. As they act on your behalf, they provide personalised
written reasons why they have recommended particular products or
a course of action.
When to look for independent advice
Your first job, buying a house, getting married, starting a
family, saving for your children and
planning for retirement... these are just some of the big
stages in your life that put additional pressures on your
finances.
It makes sense to take control at each stage and revise your
financial plans to match your changing lifestyle. If you are too
busy to take the DIY approach, then an
Independant Financial Advisor (IFA) can offer a helping hand
through the maze of products and financial planning strategies.
An IFA can help clarify your financial priorities and your
short, medium and long-term financial goals. They ask detailed
questions about your financial circumstances, your existing
investments, debts, state of health, your future goals, your
risk tolerance and
what you want from life. Then they will advise you on how to
develop a budget and
make recommendations that will help you manage your finances and
allow your money to grow for the future while ensuring you and
your family are financially protected.
An
Independant Financial Advisor can also take the pain out of the research required and
pinpoint the most appropriate products to meet your aims, such
as saving for your first home, your children’s future or your
retirement needs.
Independant financial advice is considered the gold standard of
financial advice, since it offers access to and guidance on a
huge pool of products.
But before you go ahead, ask yourself the following questions.
1 Would you want advice on the whole range of products available
rather than on a limited number of financial products or
provider companies?
2 Do you want your advisor to be independant of any commercial
relationships, which may restrict the advice they give?
3 Do advanced qualifications matter to you, particularly in the
sector you are seeking advice?
If the answer to any or all of these three questions is ‘yes’,
then independant financial advice is likely to match your needs.