What Does A Financial Adviser Do?
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What Does A Financial Adviser Do?
What exactly does a financial advisor do?
I think of a financial advisor as somebody that can help provide professional guidance, to either an individual or a business, on a variety of different financial matters.
A lot of financial advisors work independently, or they could be part of a larger organisation. They could be affiliated with investment firms, banks or insurance companies. Each financial advisor firm can work on a slightly different network.
We are independent. For us, every client’s requirements are different and strictly confidential. A financial advisor is looking to tailor solutions to a client and meet their individual needs and circumstances. The regulation over the years has increased, and the knowledge you’re receiving now from financial advisors is at a very high standard.
We’re providing access to the widest range of services available in the financial market – much more than you may find purely searching the web.
A big thing a financial advisor does is provide peace of mind and cut through the financial jargon in the industry. That makes it easy for clients to fully understand what their position is and be aware of their options going forward.
What services does a financial advisor offer?
Every client that comes in has different needs or objectives. An obvious service tends to be financial planning. We’ll assess a client’s financial status and help them set short, medium and long-term financial goals.
This can involve various things like budgeting, saving, investing and planning for retirement. We can cover a multitude of different aspects.
This often moves into investment advice where a financial advisor would recommend investment solutions and products based on a specific client’s risk tolerance and their financial goals. We build it around market conditions, because as we know they can alter year by year, day by day and month by month. There’s a big focus on ensuring the client has the right level of risk for their needs and objectives.
Planning for retirement is very key. It can feel like it’s a long time away, and so much is unknown – but it comes around quicker than you realise. We assist clients in preparing for retirement by evaluating what they’ve currently got in their accounts and pensions or other sources of income.
They might have a separate property portfolio they invest in. They could have other sources of income, and we ensure they’ve got sufficient funds to maintain their lifestyle in retirement. Cash flow planning is also vital to this process – ensuring we outline in the early stages what their retirement journey looks like.
Tax planning is another key service. Tax rules change regularly and we stay fully aware of how that impacts a client’s investment strategies or financial decisions. We keep the client abreast of where tax stands. We interact with accountancy firms and solicitors to make sure we’re all singing off the same hymn sheet for each client, to get the right outcomes.
One that’s harder for clients, but very important, is estate planning. We help clients plan for their assets after their death, in line with their wishes. We ensure they have the correct plan in place, making sure their Wills and Trusts are correct, and using other estate planning tools to minimise any tax burdens and ensure that their wishes are fulfilled.
We also help with risk management, looking at a client’s personal circumstances and protecting against an unforeseen event such as a death, a critical illness or inability to work due to illness or disability. As well as potentially suffering on the illness side, that can impact the family. We can ease that financial impact if you have all the right cover in place. In that unfortunate eventuality, which is an emotional worry, you at least haven’t got a financial worry on top to deal with.
We help clients with debt management – talking about budget planning and ensuring they’re not overspending. We look at how that could be changed for the better.
Property purchases can be a key area. Whether you’re buying a first home, second home or an investment vehicle, we can help you get started and explain how it works. As always the important thing here is ensuring that clients are fully aware of all the risks involved. Everything comes with risk and it’s about ensuring you are aware of that in what you’re looking to go into.
When should I see a financial advisor?
From our perspective, early planning always makes that journey a lot more manageable. It’s easy to decide to ‘do it later’ but early planning can make such a difference to a client’s financial outcomes.
There’s no set moment to see an advisor. There could be any number of times. It could be somebody starting a new job or a new career. They could have received a significant salary increase or a promotion. We can adjust their financial plans and benefits to ensure they’re maximising the new role they are in.
It could be that you have received unexpected money, such as an inheritance. It’s lovely if it’s a lottery win, of course. With any windfall, it’s key to ensure clients make the right decisions at the right time. Buying a home is another important time, because you’re taking on the biggest debt you will ever take on, and it’s long term.
In terms of planning for retirement, that can really be for anybody aged 18 onwards. It could be once people are starting to build their pension funds up and want to know if they are on target to meet their retirement goals and dreams.
Starting a family is a significant life change and you might want to look at educational savings plans or insurance needs to protect you all. On that point, major life changes also include marriage and unfortunate things like a divorce or death of a partner.
A lot of people have money invested and they’re not sure if it’s in the right place. Again, that’s another reason people come and see us. A lot of people look to ensure they’re utilising tax allowances available to their situation. They may have moved into the next tax bracket, or they might wish to sell an asset.
Someone could be starting a business and wants to understand the financial impact on the owners of the business, and again thinking about retirement plans. It’s generally a good time to see us if you want to budget or look at financial goals. Perhaps you’re saving for something specific and want to ensure you remain on target.
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Our expert knowledge ensures that we give you access to the widest range of services available in the financial market to find the right advice for YOU.
Will a financial advisor review my situation regularly?
Yes, one of the most important factors is the regular review of client situations and circumstances. We’re in an ever-changing world and we see ever-changing situations with clients.
Remaining on top of that is really crucial. Otherwise, things can get put off and before you know it, you’ve gone from one month to three years down the line and time has just passed you by. Regularly reviewing your situation, especially when you’ve had any changes, is of vital importance.
What is the process? What would happen if I called you up today?
Our aim initially would be to establish why you’ve called us and what prompted you to seek that financial advice. We would have a high level chat about your current situation and your goals and objectives.
We would then arrange an initial online or face-to-face meeting, which normally is around 30 to 45 minutes. We cover the cost of that. There’s no cost to an individual at that time. We would then give an overview of what we offer in line with where you are.
We confirm if there is a need for advice. At times where we’ve had client meetings where we don’t think there’s anything further to do. That gives the client peace of mind. By the end of the meeting, we establish the next stage and whether you would like to engage our services or if no further action is needed.
We would explain the process. Some things may be familiar, some may be new. You may never have spoken to a financial advisor. It’s just giving you reassurance and explaining how we operate.
What else do we need to know about getting financial advice?
From our perspective, it’s all about providing a high standard of expertise and customer service, to make sure we meet your particular financial requirements and goals. That’s the heart of everything we do.
It’s about knowing what the client’s objectives are and looking at whether we’re on target.
For anybody starting a relationship with a financial advisor, the emphasis really is to build a long-term relationship. We want you to be reassured that you can pick the phone up or drop us an email on any number of different things. You’ll have a skilled team working together with you to achieve those goals.
In an industry that sometimes can be seen as quite impersonal, we really value our relationships with clients and provide a personal service. We aim to be part of each client’s life journey, supporting them along the way – whether that be through good or bad times. We’re a financial security blanket underneath your personal situation.
THE VALUE OF PENSIONS AND INVESTMENTS AND ANY INCOME FROM THEM CAN FALL AS WELL AS RISE
YOU MAY NOT GET BACK THE AMOUNT ORIGINALLY INVESTED.