The Role of a Financial Adviser
MacKenzie Webb Associates Ltd
A professional who suggests and facilitates financial services to clients based on their financial situation
A financial adviser is often responsible for more than just arranging investments on behalf of their clients.
Advisers use their knowledge and expertise to construct personalised financial plans that aim to achieve the financial goals of their clients.
Personalised Financial Plans based on investments, savings, retirement, protection and tax strategies.
Advisers contact their clients regularly to re-evaluate their current situation, existing arrangements and update their financial plans accordingly.
A financial adviser is your planning partner. To accomplish your goals, such as retiring in 20 years or sending your child to private education in 10 years, you may need a skilled professional with the required qualifications and experience to help make these plans a reality, and that is where a financial adviser can help.
A Financial Advisers many roles;
Together, you and your adviser will cover many topics, including the amount of money you should save, the types of accounts you need, the insurance you should have (including long-term care, life protection, and disability insurance) and estate and tax planning.
The financial adviser is also an educator. Part of the adviser’s task is to help you understand what is involved in meeting your future goals. The education process may include detailed help with financial topics. At the beginning of your relationship, those topics could be budgeting and saving. As you advance in your knowledge, the adviser will assist you in understanding complex investment, pension, and tax matters.
Step one in the financial advice process is understanding your financial health. You cannot properly plan for the future without knowing where you stand today. Typically, you will be asked to complete a detailed written questionnaire and your answers help the adviser understand your situation and ensure you do not overlook any important information.
The Financial Questionnaire
The adviser works with you to get a complete picture of your assets, liabilities, income, and expenses. On the questionnaire, you will also indicate future pensions and income sources, project retirement needs and describe any long-term financial obligations. In short, you’ll list all current and expected investments, pensions, gifts and sources of income.
The investing component of the questionnaire touches upon more subjective topics, such as your risk tolerance and risk capacity. An understanding of risk assists the adviser when it’s time to determine your investment asset allocation. You will let the adviser know your investment preferences as well.
The initial assessment also includes an examination of other financial management topics such as insurance issues and your tax situation. The adviser needs to be aware of your current estate plan (or lack thereof) as well as other professionals on your planning team, such as accountants and solicitors. Once you and the adviser understand your present financial position and future projections, you are ready to work together on a plan to meet your life and financial goals.
Creating the Financial Plan
The financial adviser will collate all of this initial information into a comprehensive financial plan that will serve as a roadmap for your financial future. It begins with a summary of the key findings from your initial questionnaire and summarises your current financial situation, including net worth, assets, liabilities, and liquid or working capital. The financial plan also recaps the goals you and the adviser discussed.
The analysis section of the report will include your risk tolerance, estate-planning, family situation, and other important present and future financial issues.
Based upon your expected capital value and future income at retirement, the plan will create simulations of potentially best and worst case retirement scenarios, including the possibility of outliving your money, so steps can be taken to prevent that outcome. It will look at reasonable withdrawal rates in retirement from your portfolio assets. Additionally, if you are married or in a long-term partnership, the plan will consider survivorship issues and financial scenarios for the surviving partner. After you review the plan with the adviser and adjust it as necessary, you are ready to implement the recommendations.
Mackenzie Webb Associates Ltd is Authorised and Regulated by The Financial Conduct Authority
MacKenzie Webb Associates Ltd is an independent financial advice firm, Authorised and Regulated by The Financial Conduct Authority. Our details can be located on the Financial Services Register under the firm reference number: 1004385 | Company Registered Office: 17 Mary Vale, Godalming, Surrey, GU7 1SW | Company Registered Number: 5040142 | The guidance and/or advice contained in this website is subject to UK Regulatory and is therefore restricted to consumers based in the UK.
This website is intended only for individuals over 18 years of age who are residents in the UK. The website and the information contained therein should not be regarded as an offer or solicitation to conduct investment business in any jurisdiction other than the UK. These pages provide general information about various aspects of financial services advice that we offer, as well as potential areas of clients’ financial planning needs. We hope they are helpful to you, but they do not, on their own, constitute proper investment advice. We cannot accept responsibility for any actions you take in reliance on them without further discussion with us. Please do not make a decision based upon the information contained within these pages alone. They are not detailed or comprehensive enough to enable you to make an informed decision which is tailored to your circumstances and needs. Get in touch with us for personalised advice.
Should you have cause to complain, and you are not satisfied with our response to your complaint, you may be able to refer it to the Financial Ombudsman Service. Contact details can be found on their website: www.financial-ombudsman.org.uk
Copyright-free photography featured on this site is courtesy of Unsplash and Pexels
