Introduction
Getting good financial advice can make a big difference to your future. Finding the right financial adviser can seem daunting, but understanding a bit about the different advice available can take out some of the stress.
Managing your finances involves making decisions that will affect your future plans and financial security. Finding the right advice can sometimes feel stressful and challenging. This is especially true when you have received an inheritance, but there are other times you may want to get some advice on how to make the most of your money and how best to plan for the future. Getting good guidance can set you on the right path.
What is a financial adviser?
A financial adviser is a regulated professional who can help you make informed decisions about your money.
Sometimes you might also hear people talk about financial guidance. This usually means more general help and information about how to manage money, often provided by websites, non-profit organisations and charities. It is usually quite general and won’t take into account your own particular circumstances.
Financial advice from a qualified financial adviser, on the other hand, is much more tailored to your personal situation. For example, if you’ve just inherited some money, a financial adviser might suggest specific investments, help you understand the tax implications, or advise you on how to pay off debts. They can help with a wide range of issues, from investing, to planning for retirement or buying a home. A financial adviser should give you specific, actionable advice.
Not all advisers offer the same services, so it is worth doing a bit of research about what you need before committing yourself to any one provider.
Advice from a financial adviser is not free (although usually your first meeting will be free to help you understand what they can offer). But it can help you save money in the long term and avoid costly mistakes.
Types of financial advisers
There are two main types of financial adviser.
Restricted financial advisers can only recommend certain products or providers. For example, they might only work with one insurance company or a limited range of investment funds. You might choose a restricted adviser if you’re looking for something specific, like a mortgage, and you already know which lender you want to use. Or you might consult a restricted adviser if you're dealing with a particular financial institution that you trust, and you're happy with the range of products they offer.
Independent Financial Advisers (IFAs), on the other hand, have access to the whole market. They can recommend products from any provider, which means they can tailor their advice to your specific needs without being limited by what’s on offer from a particular company.
If your situation is at all complicated, or you want to explore all your options, an IFA can provide you with a comprehensive overview of the best choices available.
What can a financial adviser help with?
A financial adviser can help with all aspects of managing your money. They can be particularly helpful when it comes to big decisions, and planning for the long-term future. Among other things they can help with the following.
Investment planning: If you have an inheritance or other lump sum to save or invest, a financial adviser can help you decide a strategy based on your goals, risk tolerance, and timescales (when you might want to release funds in the future). They can also advise on long-term saving plans.
Insurance: A financial adviser can help you choose insurance which will protect you and your dependents if things don’t go to plan. This can include life insurance, critical illness insurance, and income protection.
Mortgages and property: An adviser can help you decide on the best way to buy a home or other property. Or they can advise you if you need to change your existing mortgage, or release some of the value in a property.
Retirement planning: Advisers can help you plan for retirement. Depending on your age, and when you would like to retire, they can help you invest and save for the best retirement income. As you near retirement age, they can help you decide on the best way to release a lump sum or secure the best income.
Tax planning: An adviser can help you with tax-efficient ways to manage your money.
Estate planning: Financial advisers can help you think about how you might pass on your wealth and provide for the next generation. They can help make sure that your plans for your estate fit with your overall financial goals and wishes.
The cost of financial advice
Good financial advice isn’t free, but it’s often worth the investment. Advisers typically charge either a flat fee, an hourly rate, or a percentage of the assets (money) they manage for you. It can sometimes seem like a lot to pay upfront, but the benefits usually outweigh the costs. Knowing that you’ve made informed decisions can also bring a sense of confidence and security that’s hard to put a price on.
Read more about the costs and benefits of financial advice.
How Trustestate can help
A financial adviser can help you with financial planning and advise you on the best products to make the most of your inheritance and secure your future. Trustestate can help you get in touch with a trusted adviser and schedule a free initial consultation.
What we offer
Dealing with inheritance and probate can be a challenging and overwhelming process. Let Trustestate take out the hassle for a fixed transparent fee. We offer a simple, streamlined service with expert support at every stage, and can signpost to partner services such as financial advisers.
Use our Complete Probate service and we’ll manage every stage of the process – we’ll take over all the admin, apply to the court for probate, and share out the estate.
Or if the estate is simple and you have time, you can use our Grant of Probate service, and we’ll apply for probate using information you provide.
Whichever service you choose, you’ll get dedicated advice every step of the way, and an online platform to keep track of everything. Book a free call with one of our experts to find out more.
