When Should I Use a Financial Advisor?
17 Dec 2018 | COMMENTS: 0 | Author: Ryan Smith | General
The chances are that if you’re asking yourself “Is it worth getting a financial advisor?” or “What does a financial advisor do?”, then you’re contemplating an out-of-the-ordinary financial move.
Much depends on what exactly this financial move consists of. Financial advisors offer general financial planning and investment advice as well as specialised advice concerning the suitability of a specific financial product, such as a pension.
Financial advisors are experts that can give advice on a wide variety of investment products. Pensions, for example, are exceedingly complex, and it’s their job to help you understand what your options are.
If you’re considering a significant investment, then you’ll have the security of significantly better protection when you buy an investment product on professional advice. You will be protected if you are mistakenly sold an inappropriate product or your advisor does not act in your best interests.
Any financial advisor you’re connected with via Local Financial Advice will have your best interests at heart.
Many banks, building societies and specialist brokers will supply you with information about different options but then leave it to you to make up your own mind as to which product suits you best. They serve as information suppliers as opposed to advisors, and they are not liable for any decision that you make. You will also get far more limited opportunities to claim compensation if the product turns out to be the wrong one for you. Any advisor for a traditional bank, as an example, will only be able to offer you products from their own company, even though better options might be available elsewhere.
A professional financial advisor, by contrast, will counsel you on the product that he or she assesses to be best for you, which means that you’re entitled to compensation if it turns out to be a bad choice. This doesn’t apply if market fluctuations lead to losses, but if you’re making a complex financial decision involving significant amounts of money and an array of products, then hiring a financial advisor is absolutely the wisest choice to make.