To help plan your spending – and saving
To secure your long-term future, you need to build some assets – initially to get you through the rainy days and then to pay for holidays and luxuries. Step one is to plan your spending so that you begin to save – and step two is to plan that saving so that you can build your wealth as efficiently as possible.
To help you plan for retirement
Once you have agreed your short-term saving needs, you can then start thinking about the long term – and most people these days realise that they cannot rely on the state for more than the absolute basics. However, planning for retirement is a complex process and there are many different options available. Pensions have come a long way in terms of flexibility and transparency in recent years and now offer a wide range of investment choices. A financial adviser will not only help sift through the many rules and product options but will also help construct a portfolio to maximise your long-term prospects.
To help meet your investment goals
As you progress through life, you begin to build your assets and your income begins to increase. However your dreams evolve, a financial adviser can help assess what is realistically possible – and put the best plan in place to help you achieve it.
And investment is as much about protecting against potential downsides as it is about targeting maximum growth. High returns are often associated with high risk – and not everyone is comfortable should their investment fall significantly overnight. A financial adviser will make a detailed assessment of your attitude to risk before making any recommendations. They will also ensure you do not put all your eggs in one basket by helping you diversify not only across asset classes but also across accounts, individual funds and product providers.
To save money and make sure you claim back what is yours
Once your risk and investment assessments are complete, the next step is to look at your tax situation. It may simply mean using ISAs or a pension plan to benefit from government incentives or it could mean choosing growth-focused assets over income in order to make use of capital gains allowances rather than pay income tax. Alternatively, for more complicated arrangements, it might mean moving assets to your spouse or children to make full use of their personal allowances. A financial adviser will always have your tax position in mind when making recommendations and can help point you in the right direction, even in complicated situations.
To keep you on track
When your investments have been put in place and are running to plan, someone needs to keep an eye on them in case other events push them off course. A financial adviser can assess the performance of individual investments against their peers, ensure that your asset allocation does not become distorted as markets move, and help you consolidate gains as the deadlines for your goals approach.
Employing a good financial adviser can remove the pressure from you and place the job in the hands of an expert. Whether you need general, practical advice or a specialist with dedicated expertise, you could find that, in the long term, the money you invest in expert advice will be paid back many times over.