what is a financial advisor

What is a financial advisor and when should you use one?

Whether you’re planning for your retirement, or simply need help creating a personal financial plan, it doesn’t hurt to seek guidance from a professional. But what is a financial advisor? To put it simply, a financial advisor is generally an expert in planning. They can help you make financial decisions on how to manage your hard-earned money. 


What does a financial advisor do?

Financial advisors can also be considered as mentors, consultants or advice-givers. Their purpose is to help their clients make decisions with certainty. They will devise a plan, putting together all the pros and cons of each course of action, to make sure you are aware of what your decision will involve. 

Financial advisors specialise and offer a range of services in:

  • Insurance
  • Tax affairs
  • Estate planning
  • Loans
  • Savings
  • Pensions
  • Mortgages
  • Investments

They are here to research, recommend and educate us on financial products and opportunities. Their goal is to help us reach ours. It takes years of training to become an established financial advisor. So with this knowledge, we know that we are in safe hands.

Choosing whether to use a financial advisor, or to manage your own assets can be a tricky decision. If you believe you are confident enough to make the right financial decisions, then great! However for many of us – this is not the case. 


When should I use a financial advisor?

If you’re looking to manage your money more effectively, invest in a financial product or create a long-term plan, advice from a professional can be very valuable. 

Understanding the importance of time management can really add value to our lives. Maybe you own your own business, work above the average working week, or perhaps you’re a full-time parent. Whatever the case, a financial advisor can provide you with the time you need to carry out your busy life. Money can be a stressful topic so why not get help to limit that stress and regain that extra time in our lives.

Most of us don’t need help with spending small amounts of money. Although, it can be daunting if you decide to invest hundreds and thousands of pounds into a property. How do you know if you’re making the right decision? This is just one of the many examples as to why it would be a good idea to get advice, and comfortably solidify your decision.


Do I need to pay?

Several advisors offer a free consultation. This means that you are able to make an appointment, free of charge, to see how their services can benefit you. It is likely that you will need to pay a fee if you choose the assistance of a financial adviser. It may seem silly having to pay for someone to help you with your finances, right? In fact, it may very well be a worthwhile investment to save you money in the future. 

An hourly, monthly or ongoing rate could apply depending on the longevity of their services. The hourly UK rate averages at £150 an hour. Although, financial advisors will always be upfront about the cost of their services – never putting you out of pocket unnecessarily.


How to find the right advisor for me?

Financial advisors can specialise in all different areas, so it is important to find the right one to meet your specific needs. Finding someone trustworthy and knowledgeable is key. It is essential to be able to bond with your financial advisor. After all, they are in control of your assets. 

Usually an advisor will have an understanding of all areas, however most will have a niche area in which they specialise. This could be focusing on life assurance, income protection, private medical insurance and many more. This is why it is beneficial to really understand what areas you need help with financially. This will work in your favour when it comes to narrowing down the right advisor for you. 

Some of us may never need a financial advisor, while some of us may really see the benefits. Assess your situation and make your life that little bit simpler.


what is a financial advisor

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