When to seek financial advice
Financial advice is guidance on money matters given by a hired professional who is an expert in a wide range of financial fields. The advice can cover a host of financial products including:
- Savings accounts
- Investing
- Pensions
- Mortgages
- Estate planning
- Tax
Financial advice is always tailored to you with the aim of assisting you in achieving your goals. This is different to financial guidance which is generalised and usually free. Examples of financial guidance include online resources which weigh up the pros and cons of a financial product, or balanced advice on accounts at your local bank branch.
Think of utilising the services of a personal financial advisor like hiring a solicitor for insight into specific legal matters. You will get recommendations based on your specific situation with the reassurance that this is accurate advice you can trust.
When would I need financial advice?
Financial advice is useful in a wide range of scenarios, whatever your financial position and aims. Understanding different products and strategies and which are suitable for you is guaranteed to help you manage your money more effectively.
Bolster your savings
You can ask a financial advisor to explore investment opportunities that could help you to bolster your savings.
Discover the different types of secure savings options such as fixed-return bank accounts and ISAs which offer tax-free savings on amounts up to £20,000. Your financial advisor will be able to help you understand any complex financial jargon and advise you on the best options for your circumstances.
You can also explore the idea of investing via financial markets such as buying stocks shares or bonds. This is an option that carries as many risks as rewards, so a good understanding of how to approach investing will be extremely beneficial and help to protect you against unrecoverable losses.
Your financial advisor will be able to identify potential investment opportunities and help you put together a diverse portfolio. They can also advise on or assist directly with portfolio management.
Plan for the future
No matter your age, it’s never too early to start saving. Speaking with a financial advisor can help you plan for the future in a way that benefits you long-term while leaving you with cash to play with day to day.
Discuss specific ways to save for the future such as retirement plans, trust funds for family members, and how to pass on money without being hit by inheritance tax.
You can also talk through different saving strategies to identify the best option for you. This could include specific repayment plans for clearing debt and advice on how to save for short-term goals like wedding plans, putting a deposit on a house or paying a child through university.
Discuss financial products
Do you find yourself confused about financial products such as credit cards, insurance and pension plans? Your financial advisor can give you the low-down on each option and recommend anything worthwhile.
For example, having a credit card is a great way to improve your credit score but only if you can keep up with the repayments. Similarly, some insurance is essential but there might be add-ons automatically included that you do not need to fork out for.
Using the services of a financial advisor is an investment, but it could help you become more financially secure more quickly because you’re more likely to get the solutions that best meet your needs. You’re also less likely to get into dangerous situations and will be able to manage multiple goals effectively simultaneously.