Why Independent Financial Advisors are invaluable When Seeking Sound Retirement Planning Advice

There is little doubt that investing now in ones own future is essential if the golden years are to be golden at all. The realities of modern life dictate that some careful retirement planning should be done, which in turn means that consulting experienced financial advisors can be invaluable.

The advice that these professional advisors give is important as financial planning and investment can be highly complex, especially when aspects like tax are to be considered too. By trusting the advice given, and the recommendations made, it is possible to build a significant nest egg over a prolonged period of time.

Not long ago, it was thought that such concerns are for later in life, but increasingly people now realise that the earlier, the better. With early financial planning, Surrey homes can be maintained, seasonal shopping sprees in London continued, and that Cornwall holiday home redeveloped so much the better.

Types of Advisors

It might seem that every financial advisor is the same animal, but this is not strictly true. There are, in fact, three types of advisors around, all of which can provide valuable advice, but not all of which have a particularly pure motive. A tied advisor is commonly provided by banks and other financial institutions, who are interested mainly in selling their own financial products.
If a person were to go to their local bank, for example, and speak to the resident investment officer, then they would be recommended products provided by that bank, and not any other.

Multi tied advisors are usually not tied to any one specific financial institution and will advise on a number of financial products from a range of companies. However, the range is narrow and the advisors themselves earn a commission for products they sell. The third type is the IFA, or the independent financial advisor. These are unique in that they earn nothing from any products sold. IFAs will advise on every type of investment, mortgage and retirement package that is available, recommending the best option to clients based on their own circumstance. Crucially, this kind of advisor is regulated in the UK by the Financial Services Authority, so the integrity of the service is maintained.

Value of Unbiased Advice

A key advantage to seeking advice from an independent advisor is that the individual interests of the client should be best served. For unbiased, trustworthy advice, it might be worth considering a finanicial advisor who charges using a transparent fee structure rather than an advisor who is commission based.

Unravelling the Complexities

More than anything else though, the true value of an independent financial advisor is in their ability to unravel the complexities of the financial world for their clients. This is a particular skill, as it not only involves understanding a clients short term and long term goals, but requires an excellent understanding of pensions planning, investment planning and the impact of current tax legislation.. For every individual, there is a wide range of options available and a mesh of strategies to consider. Advisors can identify the wisest use of the annual ISA allowance, and whether an SIPP is the best course of action to take.

Again, this relates to the benefit of the unbiased perspective of the independent advisor, as their independence means they are willing to relay information on a range of options available with good quality organisations.

Tied advisors may know all the financial planning and investment options in detail, but they often relay what their client wants to hear rather than what they need to hear, with one eye firmly on the sale.

In truth, retirement planning is needed to build a better and more secure financial future. By looking to the wisdom of independent advisors, the best advice is available to make that security a reality, so that through their recommended financial planning surrey, London, Cornwall and Lancashire home owners and professionals can maintain the lifestyle they enjoy after retirement.