No More “Free” Sessions From Financial Advisers
You cannot blame people if they are sceptical about financial advice websites; after all, they have not forgotten the string of scandals involving pension funds and investment and commission-driven products like payment protection insurance. However, financial advice has drastically changed in recent years due to the influence of regulators.
In 2013, tougher standards were introduced by Retail Distribution Review (RDR) to force the regulated financial advisers to have higher levels of qualifications and ban commission-driven sales. In the past years, people were invited to the so-called “free” sessions that were paid for through kickbacks or commissions on investments and products. Today, clients have to pay an upfront fee, often running to several hundreds or thousands of dollars for an unbiased advice that is exclusively tailored to their requirements.
Meanwhile, people have started to have greater control of their finances because of technology platforms. It became easier to those who have a degree of savvy to decide how to run their money and remove the need for middlemen. However, many people still continue to rely on a financial adviser because of they are incapable of dealing with their own finances.
Not everyone needs a full-blown financial advice when they only require guidance in budgeting and managing debt. Basic financial planning usually involves paying off accumulated debts, creating cash savings, paying off the mortgage, whether or not to join the company’s pension scheme or understanding the employer’s protection benefits.
On the other hand, there are individuals who have large savings and investment. They need financial advice to be able to manage their money properly. There are also certain circumstances that make it important to seek a professional financial adviser like inheritance of a big amount, getting divorced, having a child or when to take the pension benefits. Timely financial advice is very important when a big decision has to be made regarding large amounts of money.
The biggest cause of stress is usually money. Everybody wants to achieve their financial goals like owning a house, having a business or a new car. The best option is financial advice websites that will tell you what, when and how you can afford it so that you can manage your cash flow.