Do I need a financial advisor or planner?

Getting the right advice from a financial advisor or financial planner is essential if you are looking to invest your money wisely in financial products.

Think of it like this. If you were seeking medical advice, would you self diagnose? If you were buying a home would you knock on every door to see who’s selling their property.

No, you would seek out advice from someone who could offer advice based on knowledge, expertise and professional experience.

Through detailed and thorough analysis, a financial advisor or financial planner will look at your current financial situation, your goals and aspirations and how comfortable you are with taking risks. They will then ‘fact find’ to seek out the right financial product for your long and short-term goals.

By using a financial advisor or financial planner, you will have access to a much wider range of financial products than you would by approaching financial product providers directly. An advisor will have access to providers that cannot be found on the high street or products that you may not have even considered.

In December 2012, the rules on financial advice changed. Financial advisors now charge a fee for their services rather than taking a commission on financial products sold. This means that financial advice is no longer influenced by how much an advisor will earn from an investment and ensures that any advice given is in the investor’s interest. Many financial advisors offer a free initial consultation to discuss your financial situation and the options available to you going forward. It is worth noting that this fee does not apply to mortgage advisors, instead they receive a flat rate introducer’s fee.

If you’re considering investing in unit trusts, shares, or other investments, you can research the market yourself. However, this is not only time consuming but it is also risky because products can be complicated in their terms, requirements and expected returns.

If you do not wish to use a financial advisor or planner you will really need to put aside enough time to do your research, understand the terms, and be secure in your decisions otherwise you could make the wrong investment decision.  Do you have the money to take this risk?

A financial advisor or planner can help you to find the right product for you, and one that has historically performed well. They not only have the knowledge and expertise, but also up-to-date information on each available product.

For advice on financial planning or products available to you, contact us today.


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