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Should Your Family Use an Independent Financial Advisor?

Updated on March 23, 2011

An independent financial advisor can help you reach your financial goals. Researching complex financial products can be time consuming and confusing, so having a financial advisor to help you can reduce your stress and help you make the most of your money.

Here are some areas in which an independent financial adviser can be useful to you and your family:

1. Endowments

If you have an endowment that you want to surrender or sell, it can be a very complex process. Hiring an independent financial adviser to help you sort out the details and examine your options can be very useful.

2. Annuities or Pensions

When you retire, you can trade in your pension for a product called an annuity. Through this annuity, you will receive an annual payment for life. An independent financial adviser can be crucial if you are considering an annuity, because it is a large financial transaction that cannot be undone. An independent financial advisor can help you examine the entire market to make the wisest decision.

3. Financial Planning and Taxes

For families with large incomes, financial planning can involve complex products that can be difficult to understand. An independent financial advisor can help you manage your taxes and plan productively for your future.

4. Investments

Selecting investments can be one of the trickiest and riskiest financial moves you can make. It is important to remember that no one knows for certain what the markets will do in the future. There is always risk involved in investing. However, an independent financial advisor who has monitored the market for years can help you make the most reasonable choice.

5. Mortgages

Like annuities, mortgages are another very large financial investment. Before taking on any mortgage, you should do the research necessary to understand mortgages and the process of obtaining one. An independent financial adviser can give you valuable advice. In this case, look for an independent financial advisor who specializes in mortgages. Another option is to work with a mortgage broker who can search the market for free.

6. Financial protection.

Products that protect your finances such as life assurance and income protection can be complex enough to warrant hiring an independent financial advisor. Some of these products can be acquired cheaply without help. However, if you are in doubt about which product to choose, working with an independent financial adviser can give you peace of mind.

Image Credit: Ken Wilcox, Flickr


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  • gajanis786 profile image

    gajanis786 7 years ago

    The importance of an independent financial advisor is always there provided one realizes it's importance.....normally people think they know everything themselves and can solve financial matters also...... ultimately they plunges into deep financial crises which sometimes ends into bankruptcy.Thanks.