“There also seems to have been a reluctance to take professional advice, relying instead on the wisdom of family and friends.
do over the purchase of a house! Your Financial Adviser can help lay out the pros and cons of the choices available to you in whatever situation you face. They can explain complex financial products or delve into the small print of a contract to make sure there are no hidden catches.
They will be able to look objectively at your current holdings which you may have retained for sentimental reasons rather than as part of a sound financial plan. They will not ignore the things you think are irrelevant; they will talk about
managing your debts as well as your investments and they should be able to identify if you are
overweight in any particular asset class.
Understand and emphasise the true meaning of risk and volatility It’s amazing how many people say they are risk averse and yet they have a portfolio made up mainly of stock market investments. Or they may say they need liquidity, so they keep all their money on deposit at the bank rather than just the amount they may actually need in the short term.
Others will shrug off the need to have a pension because they own property but then run into trouble when their tenancy doesn’t run as smoothly as they thought.
One of the most fundamental roles for your
be asked to consider what capacity you have for loss – what effect will loosing some or even all of your money have on your standard of living, especially once you have retired.
Build and monitor a meaningful plan
During your meetings with your Financial Adviser, he or she will have gathered personal information, they will know your short, medium and long terms goals and they will know what financial plans and resources you already have in place. They will have considered your capacity for loss and taken account of any anticipated or planned life changes such as starting a family, moving home or retirement. They will have asked lots of questions but will also have spent a good deal of time listening to you.
This will allow the formation of a financial plan, as simple
follow the plan but hopefully it will have been formulated with your needs in mind which will make it a great deal easier to follow.
With your help, they will then, respectfully, keep track of those plans. We all know how life throws up the odd curveball, plans and circumstances change all the time - good things happen and bad things happen but at least you might feel slightly better prepared financially and those events which are predictable will be less likely to sneak up on you unexpectedly!
So if that has persuaded you, how do you go about choosing an Adviser? Certainly take advice from people you know who already have an Adviser as personal recommendation remains one of the strongest reasons given by new clients walking through the door. Bring up the nasty business
are fully transparent so don’t be embarrassed to ask early on and don’t feel obliged to ‘sign up’ straight away, take as much time as you need.
Interview them for the job! Ask about their
qualifications, their industry experience and specialist areas until you have gained the confidence you need to allow you to trust them with your financial future.
Above all, remember that a good Adviser should be looking for a long term business relationship, not a quick sale. But be prepared to answer those difficult questions and be fully engaged in the process so that you can work towards meeting your financial goals. Choosing the right Financial Adviser could be the best decision of all.
Mb. 07797 734470 20/20 Finance & Investment Page 79
Financial Adviser is to assess what level of risk you are really prepared to take and with what proportion of your portfolio. In reality, you will
or complex as you like. Ideally with some solutions or suggestions of action for you to take. Of course, it is still your choice whether to
”
of fees early on as there are a number of ways you can pay for advice these days. New rules for Financial Advisers dictate that costs
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