Why is it that although people have no compunction in seeking advice from doctors, dentists, lawyers, and other such professionals, when it comes to financial advisors, consideration would not appear to be that forthcoming. An IFA, or independent financial advisor is only approached when a savings plan or private pension plan is needed and it always seems to be at the last minute.
For those of you who don't already know an Independent Financial Advisor is a person who is independent of all the life insurance companies banks and financial institutions. A good one will actually work for you the client. Whilst a lot of them work on a commission basis this rarely effects the advice that they give you, due mainly to the fact that they are duty bound to give you best advice and furthermore they have to confirm why they have done what they have done for you in writing, and trust me if it is not the best advice then it is almost impossible to justify it.
So what exactly can these independent financial advisors offer? Well, they can offer almost all financial products on the market such as life insurance, pensions, savings plans, investments and of course mortgages. Some advisors have additional services such as inheritance tax planning and will writing services.
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.
All these facts lead a good advisor to the point that they are able to accurately advise you on the most appropriate products for your needs and your budget. At which point they are able to design a solution for you and go off and get quotes for the best products to fit your profile.
Once they have done this they are then in a position to sit with you again and go through their proposals for you and if they are acceptable to you they can move it all forward and make applications on your behalf.
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 to summarise an independent financial advisors job entails gathering information about you and researching the best products for you then sitting down with you to ensure that you know exactly what you have and what they propose and then carrying out regular reviews to ensure that the advice stays current and relevant. So I think you will agree they are worth their weight in gold, especially in these financial times when we should all be reviewing what we have and most of all why we have it. - 15224
For those of you who don't already know an Independent Financial Advisor is a person who is independent of all the life insurance companies banks and financial institutions. A good one will actually work for you the client. Whilst a lot of them work on a commission basis this rarely effects the advice that they give you, due mainly to the fact that they are duty bound to give you best advice and furthermore they have to confirm why they have done what they have done for you in writing, and trust me if it is not the best advice then it is almost impossible to justify it.
So what exactly can these independent financial advisors offer? Well, they can offer almost all financial products on the market such as life insurance, pensions, savings plans, investments and of course mortgages. Some advisors have additional services such as inheritance tax planning and will writing services.
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.
All these facts lead a good advisor to the point that they are able to accurately advise you on the most appropriate products for your needs and your budget. At which point they are able to design a solution for you and go off and get quotes for the best products to fit your profile.
Once they have done this they are then in a position to sit with you again and go through their proposals for you and if they are acceptable to you they can move it all forward and make applications on your behalf.
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 to summarise an independent financial advisors job entails gathering information about you and researching the best products for you then sitting down with you to ensure that you know exactly what you have and what they propose and then carrying out regular reviews to ensure that the advice stays current and relevant. So I think you will agree they are worth their weight in gold, especially in these financial times when we should all be reviewing what we have and most of all why we have it. - 15224
About the Author:
Good financial advisors can be very hard to come by so why not have a look at Invest & Protect ltd we are fully qualified in offering independent financial advisors.
