Benefits of Seeking Financial Advice

While it can be helpful to have a financial advisor to ask about complicated investment dealings, should you be paying for that advice? Before you answer that you must look at these questions:

Are you hesitant to make stock market investments?

Do you hold a great deal of cash, in the knowledge that inflation is diminishing its worth?

Have you bought stocks on the advice of a broker and thought, “Well, I don’t know what else to do”?

If you answered positively to the above questions, it is possible you are in need of an independent financial adviser. If you feel out of your depth in your financial life, the help of financial advisors can be just what you need. Going solo doesn’t always yield good results, and it can be wise to defer to a pro.

The most frequent products which financial advisers can help with are listed below. Even if you plan on taking financial advice to get one of these, it is good to have an idea of what you will get before you commit to anything.

Financial planning

If you have a lot of money and assets, financial planning becomes much more difficult. There are a lot of complex products that could help but are also hard to comprehend. In this situation, a good financial advisor from a well-established Financial Wealth Management firm can prove to be quite beneficial.

Investments

Getting involved with investments can be a risky business. Always bear in mind that there is no golden ticket; most decisions are based on educated guesses and are in no way certain.

Mortgages

One of the most important financial dealings in many people’s lives is organizing a mortgage. You will get the help of a mortgage advisor, but it is crucial that you are personally familiar with the basics. That way you, at least, understand the terminology.

Protection insurance

Should times become financially rough, you may need insurance of some kind. This can be health insurance, life insurance, even income insurance. There are a lot of policies out there and perhaps a financial advisor could help you separate the good from the bad.

Pensions and pension transfers

Obtaining a private pension plan is about choosing the provider who is right for you. Pensions can be tricky. However, it could be made simpler with the advice of an IFA (Independent Financial Advisor).

Paying for Financial Advice

There are numerous ways in which a financial advisor can charge for their services. It could be through an hourly rate, a flat fee, or a percentage fee. This usually depends on the kind of work they are doing on your behalf.

Percentage fee

This is how most financial advisors charge. It’s a fee arrived at based on the amount of money you want to be advised on. You pay a primary percentage to become a client and to invest your money. Then you pay a continuing rate for each year that you retain their services. This percentage can range anywhere from 0.5% to 5%, so make sure you ask.

Fixed fee

This amount is charged every time you call on the advisor for any assistance. This can be consolidating pensions, or making investments. These are great for those don’t require ongoing advice and just need help with one particular element of their finances.

Hourly charge

More and more financial advisers are going over to a model which resembles solicitors or accountants. This means that they are charging on an hour by hour basis. If this is how you choose to proceed, make sure you’re given a detailed report of all the work they have undertaken and the time they spent doing it. Hourly charges can be anything from between $50 to $250 an hour, so ensure that you know before you proceed.

There is no need to feel intimidated. You are possibly going to entrust large amounts to this person. Therefore, you are well within your rights to ask any questions that may give you a little peace of mind.

Your first meeting with a financial adviser is quite often free. If you feel that after talking to them, it is not the road you would like to go down, you are under no pressure to take their services onboard.

To summarize, a financial adviser is there to help you. If they are worth their salt, they will explain things clearly, in a way you can understand. They will look out for your best interests, and most importantly of all; they will try to make your money grow. Good luck out there!