There are times in life where you know you are in better hands with an expert – a doctor to oversee your health, a mechanic to fix your car, a solicitor to address your legal affairs. When it comes to your money, seeking financial advice from an expert can have an equally positive impact on this hugely important area of your life.
We can all be guilty of focusing too much on our short-term financial issues, without paying enough attention to the things we will need five or 10 years down the line. A financial adviser can help you to take a step back, and see the wood from the trees; so you can focus on what really matters.
With their expertise, you can reshape your financial plans, with the aim of achieving a more fulfilling financial future. Financial advice will enable you to make more confident decisions about your money.
How does financial advice work?
There are different ways you can obtain financial advice, including telephone-based, robo-advice and good old fashioned face-to-face. The latter involves sitting down with an adviser and thoroughly assessing your current finances and future goals.
Another hugely important consideration is the type of advice you wish to receive. This is where it gets a little more complicated; but in a nutshell you can choose between Independent and Restricted.
What is the difference between Independent and Restricted advice?
Independent financial advice
- An Independent financial adviser can recommend products from the whole market and from every product provider.
- This includes complex products, such as Venture Capital Trusts (VCTs) or Exchange Traded Funds (ETFs).
- If you want a vast range of options to choose from, an Independent adviser could be the right choice for you.
Restricted financial advice
- A Restricted financial adviser can offer advice on a limited number of products and/or providers.
- The restriction can vary widely, with some Restricted advisers limited to one, or a small number of products and/or providers, whilst others will offer a relatively wide range of products from a variety of different providers.
- The restriction can be in relation to the product range, provider, or both.
What type of advice do we offer?
We have chosen to offer Restricted financial advice, doing so allows us to specialise in a number of investment planning areas – ones that we feel are appropriate for our customers' needs – and enables us to focus on researching the thousands of products and investment funds available in these areas to construct our 'Preferred Product/Fund Range'.
Mark Elliott, Skipton's Head of Technical Research, explained, “Independent advice may be appropriate for those investors who want to look at a much wider range of products; but from talking to our existing customers we found that they would prefer for us to be specialists in the areas where they need our help. We think it's important to be experts in these fields, and focus our expertise on the areas that are relevant to our customers.”
When you invest your capital it is at risk, so you may get back less than you originally invested. The value of your investments and any income from them may fall as well as rise.
Is financial advice expensive?
A fee is payable for financial advice. Our fee will be a percentage of what you invest, and the fees that would be payable will be made clear to you before you make any decisions.