Trust the Experts: 7 Benefits of a Financial Adviser

benefits of a financial adviser

Plenty of people feel out of their depth when it comes to money management. Whether you’re looking at pensions, insurance, mortgages, or savings and investment products, there are so many options available and it can be overwhelming. Recent research has shown that up to one-third of people in the UK don’t have a pension. It’s really critical to plan for the future and many people could benefit from professional financial advice. The benefits of a financial adviser include bespoke advice on defining your financial goals, building wealth, and planning for the future.

Read on to find out more about the value of good financial advice. 

7 Benefits of a Financial Adviser 

A good financial adviser will begin the process of working with you by undertaking a fact-finding exercise. They will find out more information about your circumstances and goals and any financial products you already have.

One of the most important things is to assess your risk appetite. How much are you prepared to lose in the investment market? Once all of this is established, they will go on to recommend financial products that are suitable and affordable for your current circumstances.  

Let’s look in a little more detail about the specialist advice available from financial advisers.  

1. Product Recommendations and Protection 

If you take financial advice before buying a specific product, you should end up with a product that meets your personal needs and is most suitable for your circumstances. Using an adviser may also give you access to a range of products that you may not have been able to access on your own.

You also have protection if something goes wrong. If your adviser gives unsuitable advice or has not acted in your best interests, you can complain to the Financial Ombudsman

2. Objective, Expert Advice 

Lack of objectivity can be a major issue in investment decisions. A professional adviser will make their decisions based on analysis and objective decision-making, without emotion or panic. An experienced professional will know when to hold their nerve if the market looks a little shaky, enabling sound long-term decisions.

Financial advisers are full-time professionals with many years’ experience. No matter how hard you try, it’s hard to keep up-to-date on all the latest developments in taxation, investment opportunities, and market developments. You should be able to rely on your financial adviser to give you the most well-informed advice. 

3. Savings Advice

Let’s look at some of the areas where financial advisers can add value to your decision-making process. In terms of savings advice, it’s easy to get general guidance on what your savings options are. Financial advisers will go further and offer advice on particular products.

A financial adviser would take you through specific options of savings accounts, ISAs and investment opportunities, and recommend one that suits your personal circumstances best. 

4. Investment Advice 

It’s important to note that some financial advisers are independent and offer a full range of products from the market. Others offer a more restricted service and only have a limited range of products or providers. 

Investment products are harder to understand than cash savings products, and taking advice can ensure that you’re aware of all the options available to you. If you have limited time to undertake research, or you lack the skills and knowledge to make the best decisions when it comes to investing, then financial advice in this area is a good idea. 

5. Long-Term Financial Planning 

A key part of getting your personal finances in order is ensuring that you plan for the future. Pensions are long-term investments and it’s important to understand the funds you’re investing in and any associated risks. 

A financial adviser can help you to make decisions about personal pension products or boost your existing pension. If you’re considering combining different pension pots, it’s important to get expert advice so that you are fully informed on how each product works and what plan is most suitable for your long-term financial security. 

6. General Money Management Advice 

A good financial planner can also help you with general finance tips. This could include how much you need to save in your emergency fund and what your long-term savings target should be. They can also help with budgeting tips – what do you need to do differently to improve your financial circumstances? 

Financial advisers can offer banking advice to make sure that your current bank is offering the services you require. This could include looking at bank charges including overdraft fees, the availability of digital and face-to-face services and any additional services offered with your bank account. 

Financial advisers can also help to identify any changes you could make to improve your tax situation. This includes long-term tax and estate management planning, as well as any tax implications from investments. 

7. Peace of Mind 

Possibly the greatest benefit of using a financial adviser is that it gives you peace of mind. You can relax, knowing that your money is in a safe place and that your financial adviser will help you to deal with any challenges which may arise. 

You can also feel secure in the knowledge that, should your life circumstances change, your financial adviser ill be able to help you navigate through the transition. This will reduce stress and help you to continue on your path towards financial freedom.

Choosing a Financial Adviser 

If you’re now sold on the benefits of a financial adviser, the next step is to choose one. You need to ensure that you fully understand their fee structure. Some charge by the hour, while others charge a flat fee for a specific product or take a commission on products that you buy through them.

You should also ensure that the financial adviser you use is fully qualified and registered with the Financial Conduct Authority. This means that they meet the required standards and also that you have some protection if you’re unhappy with the service provided.

Staying Informed 

Even with the benefits of a financial adviser to help you make financial decisions, it’s a good idea to try to stay as well-informed as possible about what’s going on in the finance world.

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