Recent changes in the law on savings and pensions have made the financial world a scary place for those with little experience of making their own decisions about how their money is invested.
The new legislation impacts on tax issues with the increase in ISA limits and on inheritance tax on the family home, which is often a major asset which individuals plan to leave to their children.
Perhaps most important of all, new rules on pensions give flexible access to retirement savings, which can now be accessed in certain circumstances and spent as we wish. Recent changes in the law on savings and pensions have made the financial world a scary place for those with little experience of making their own decisions about how their money is invested.
Even people who have managed their money and savings successfully over the years may wish to seek advice from a professional independent financial adviser (IFA) when it comes to securing an income in later life, while those on low pensions may also need help to maximise their income.
There are, of course, many individuals between these two extremes, and they will certainly want to have initial discussions with an IFA. You may have a sum to invest or wish to set up an inheritance plan, plan your own retirement, transfer a pension to another scheme, draw money down or purchase an annuity. If you tick any of those boxes, seeking advice will be your preferred option.
A good place to begin searching is via the Financial Conduct Authority.
In this complex financial landscape, you will want to ensure that your adviser is familiar with and using software for IFAs provided at fintech sites such as intelliflo.com.
Initially people are put off by the potential cost, and advice can be expensive, particularly if a large portfolio is being managed. Fortunately, IFAs are highly regulated and must reach a high level of expertise. Furthermore, advice should always provide value for money, and a good adviser will have tailored packages to suit all needs.
Good advice will make you money, or at least help you to save and avoid losing money through bad investments or taxation advice.
It is important to have a level of trust in the relationship, and choosing a registered adviser as outlined above will help to establish that. Good advice will make you money, or at least help you to save and avoid losing money through bad investments or taxation advice. The increased range of advice made available will be backed up by guarantees and protection via the Financial Ombudsman Service and, if things go wrong, the Financial Services Compensation Scheme.