Financial Planning Update: The value of a financial adviser

Holistic Planning

‘You don’t know what you don’t know’

Many of us may consider and plan for the things we are aware of or comfortable with, but can forget or neglect the things we’re not so comfortable with.

Through engaging with a financial adviser we will help to highlight key areas, and advise on how adequately prepared you are. This will include ensuring you have savings in place for short term emergencies; investing enough for the longer term to prepare for retirement and having adequate protection in place for your family. 

Investing

No one is able to guarantee the next big stock, or predict when markets may fall.

Markets can be volatile at times depending on world events, yet over the longer term a well diversified investment portfolio will generally grow. By having an adviser by your side we will ensure you think long term, stay on course and don’t get knocked off track by the shorter term market fluctuations.

A financial adviser will construct an approach to investment which ensures you are comfortable and confident, considering your aims and objectives, investment timeframe and attitude to risk.  

Tax Planning

A key role of a financial adviser is to optimise your tax efficiency, through utilising various tax wrappers and maximising allowances and reliefs. Some of this planning can be relatively simple, but very effective, such as making ISA and pension contributions. Some can be a little more complex or less well known, such as using your savings, dividends and capital gains tax allowances.

The role of optimising your tax position is a constant one and will change over time. Trying to mitigate tax as far as possible to help build your wealth, then looking to provide the income you need in retirement in the most efficient way.   

Reassurance

Making financial decisions can feel daunting and complex, by working with an adviser you will feel empowered and have confidence that you have a strategy in place to achieve your objectives.

Over time our circumstances will change, as will legislation, so being able to discuss this regularly and the flexibility to adapt to this is important. Which is why a financial adviser will have regular reviews to ensure you remain on track.

The importance of independence

There are a number of adviser firms, which broadly fall into two categories:

Tied advisers are associated with a specific institution or provider and are only able to advise on products or solutions provided by this institution.

Independent advisers are able to advise on all aspects of financial planning and are not tied to any one institution, meaning they have access to a broader range of providers and solutions.

Through ensuring you are dealing with an independent adviser you can be confident that all aspects of your affairs are being considered, with access to the most appropriate solution to help you.