By Mary Green
So, you have taken the plunge and contacted a financial adviser and have had a successful free initial chat. What comes next?
The advice process
This is made up of three parts
- Planning
- Implementation
- ongoing servicing.
If your adviser offers to do the planning for free then this is a red flag, this means that they will only get paid if they sell you a product. The skill of the financial adviser is in the planning process where they look at your situation in-depth and help you to navigate a path through the financial system that is optimal for your individual circumstances.
They should be able to offer you a cash flow plan based on your objectives, goals and financial situation which they can explain to you in an understandable and clear way. Planning is usually charged as a standalone process, and you should be told the exact fee prior to it being carried out. It is difficult at this stage to establish exactly what may be needed in the implementation phase, for example pension consolidation or setting up an investment but an adviser will be able to give you an indication of their charges for these services.
Once you have your financial plan in place your adviser can identify any shortfalls or gaps. They can then pull a number of levers which will support you in getting your plan in shape to help you meet your stated needs and objectives. Some examples of these levers are bringing together old workplace pensions into one pot to maximise your potential income in retirement or investing via tax-efficient wrappers such as a ISA. There will be implementation fees for these services which should be disclosed at the outset.
The final part of the advice process is ongoing servicing, this is where the adviser will continue to monitor your plan to make sure it remains suitable for you and adapt it when your circumstances change. They will also be available to have your back and explain anything relating to your financial situation as and when it comes up. They will be available when there are scare stories in the media to reassure you and help you plot your course safely through different economic cycles and tax changes.
