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Why Financial Advisers are like stabilisers

You have probably used stabilisers to help your children learn to ride a bicycle. Stabilisers help them learn to balance the bicycle, and use brakes and gears. You keep them on the bike until the child is confident that it can ride without them.

Just like children, adults need support with financial planning, wealth management, and investing. Financial advisors support clients by creating a financial plan for their future. In this regard, financial advisors are the equivalent of stabilisers, making their clients feel safe and secure in the knowledge that they are not alone and there is a system in place that won’t let them fall too far.

The Role of Financial Advisors

Financial advisors help you manage your money and achieve your financial goals. They look at your assets, liabilities, and income and explore a range of financial planning and investment options to help you, maximise savings and wealth creation. Just like the stabilisers, financial advisors help you make progress much faster than you would do on your own.

Financial planning services often involve the three major areas:•    budgeting •    investment management •    estate planning

Budgeting

Financial advisors help you manage your expenses and debts by creating a budget that reflects your financial reality and expectations. The budgeting process involves developing a reasonable debt payment plan and fitting all your expenditures within your monthly or annual income. Part of the plan entails tracking your costs and ensuring that all bills are paid on time.

Investment Management

Investment or portfolio management involves building and managing the investment account of a client. An investment advisor educates you about all the available investment options, depending on your savings and income.

The investment advisor will discuss the benefits and risks of different investment options with you. You can then work together to set investment targets, timelines, and acceptable risks based on your risk tolerance.

The financial advisor will help you build a portfolio of investments that may include stocks, mutual funds, bonds, art and collectibles, entrepreneurship, and real estate. They may also offer portfolio management services, which involve monitoring investments and making important decisions on your behalf.

Estate Planning

Estate planning involves developing a cohesive wealth management strategy that maximizes returns on investments, reduces costs such as taxes, and ensures a smooth wealth transfer.

An important component of estate planning is choosing financial vehicles that suit your financial condition. Your financial advisor will advise you on debt repayment, retirement plans, saving accounts, investment vehicles, and insurance products that minimise tax obligations while accruing other benefits.

Finally, your estate planner can help you develop a wealth transfer strategy that ensures a fair distribution of your wealth to the next generation. They will also incorporate tools for managing and resolving conflicts within the plan, such as power of attorney.

The Need to Build Trust

It is important to build trust with your financial advisors right from the start. Most professional financial advisors have qualifications such as certifications as registered investment advisors, wealth managers, stockbrokers, and financial consultants. For instance, financial advisors in the UK are registered with the Financial Conduct Authority.  You should only hire financial advisors who are certified by nationally recognised registration agencies.

Apart from professional qualifications, you need to work with a financial advisor who understands your financial needs and goals and is committed to helping achieve them. Choose financial advisors with a reputation for putting customer’s interests first. The best advisors take time to understand client needs and financial concerns and develop financial goals that reflect their aspirations.

Work with Certified Financial Advisors

FH Manning Financial Services is a certified independent financial advisor serving UK clients since 1975. We offer professional and customized financial advice to individuals, corporate clients, and trustees. Our firm is authorized by the Financial Conduct Authority. If you want to speak to a Financial Adviser that will support you in making the right Financial decisions contact Claire, our Chartered Financial Planner via email clm@fhmanning.co.uk.

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