There are definitely times in your life where getting some sound financial guidance could prove to be crucial, especially if there are some aspects of a transaction or planning that you are unsure about.
Finding a suitable property to buy, see Frank Innes for details, is one example of where financial advice could prove pivotal and help you to complete a transaction or plan ahead, with the minimum of fuss possible.
Do you need financial advice?
You may be financially savvy and understand a number of the terms and scenarios that you might encounter, but even if you have a reasonable level of comprehension, there are times when it pays to get a professional opinion.
When you arrange to see a financial advisor, the first thing that they will do is carry out a ‘fact find’.
They will need to ask you a number of searching questions about your current financial circumstances, as well as also getting a background to what goals or ambitions you have that revolve around money. They will will also try to gauge what sort of risk profile you have towards money.
Getting all of this information together about you should enable an advisor to suggest the right financial products for your profile and levels of affordability.
You don’t have to be wealthy
There are a number of myths that are often perpetuated regarding the use of financial advisors, and top of that list is often the belief that you need to be wealthy in order to gain access to professional advice.
The fundamental point to take on board is that there is a clear distinction between wealth management and financial advice.
The vast majority of financial advisors are perfectly willing to sit down and go through an evaluation process in order to establish if they are able to offer any help. The fact that the old commission system has been replaced by a fee structure, has actually helped to introduce some transparency to the situation.
Financial advisers now charge a fee for accessing their services, but what hasn’t changed is the fact that a good advisor should be able to demonstrate an ability to make you money and save you money, and earn a fee for doing so.
You will have to buy a financial product
Another popular myth which can dissuade some people from seeking some financial advice, is the belief that you will not be able to obtain any financial advice without having to buy a financial product at the end of the process.
The aim of a financial advisor is to make sure that the money you have is being used as effectively as possible, so sometimes the advice you receive does not involve recommending a financial product, contrary to what you might have been told.
You are firstly buying good advice and a financial product is the second part of the process, which may or may not be appropriate. So don’t be deterred from seeking financial advice simply because you think you may have to buy a financial product as part of the deal.
Keeping on the right side of the law
Always an important consideration of course. Some people may have the perception that anything to do with tax planning could be a bit open to interpretation and they worry that the tax man could take a dim view of your efforts to save some tax.
There is a world of difference between tax avoidance and tax evasion and the latter is not something you should consider. A professional financial adviser will also be keen to distinguish between the two and suggest tax avoidance strategies, which are perfectly legal and acceptable to the tax authorities.
We all have a certain amount of personal tax allowances to make use of each year. A financial advisor will use their knowledge to help you make the most use of these allowances and arrange your tax planning in a fair and legal way, that the tax man should approve of.
A second opinion is always useful
When it comes to important financial decisions such as buying a house or planning your retirement, it is vital that you make the most of what you have.
Getting a second opinion before making some of those big financial decision in your life is always useful and could turn out to be money and time well spent.
When you are talking about your money and your future, there are certainly times when you should not go it alone.
Amelie Bartlett is studying for her bachelor’s degree in finance with plans to enter the world of corporate finance in 2017. She enjoys writing and finds that blogging for personal finance as well as business blogs helps her to focus whilst also being of use to the public.