It is well known that the British don’t like to talk about money, but this is unavoidable when meeting with a financial advisor. Let’s take a look at three of the most common questions financial advisors are asked.
Can I afford to retire?
Planning for retirement is one of the top reasons for taking financial advice. At any point in your career, it is appropriate to begin thinking about funding your retirement; in fact, the earlier the better. Whether planning for full retirement or toying with the idea of partial retirement, the prospect of financial security in later years can be daunting for many.
A financial advisor should be able to help you answer this question. They will need to take some time to assess your individual circumstances, finding out all about your current assets and debt, what your objectives are, and what kind of lifestyle you desire.
Pension planning is probably one of the most complex areas of financial planning. It was made even more complex by reforms in 2015.
How can I pay less tax?
Good financial advice on this topic will stop you falling foul of schemes that may land you in hot water. A financial advisor will be able to look at your assets, savings and investments and recommend structures that maximise your tax allowances. An advisor who uses software for financial advisors will be able to tap into powerful tools to help manage compliance on this tricky topic.
How much do you charge?
It may not always be possible to give you an exact cost upfront; however, a financial advisor should be clear about whether they charge a flat fee, charge by the hour, or charge a percentage of the value of the investment.
Many advisors will provide an initial consultation meeting to give you an opportunity to ask questions about fees and what to expect in return; quite often, the first meeting is free. This could be a good time to ask whether they use software for financial advisors, which can improve the quality of their service to you.
Discussing the cost of ongoing advice is also important at this stage. Not all clients will need ongoing advice; however, if this is necessary, it is better to be informed from the outset.