Personal Finance

When Should You Seek A Financial Adviser?

When Should You Seek A Financial Adviser?

There’s no doubt that shoppers and households nationwide are facing up to a number of challenges in the current economic climate, as the likely realities of a no-deal Brexit become increasingly apparent.

Along with the ongoing uncertainty that has been created by the global economic slowdown, consumer confidence has fallen ahead of the Christmas trading period, with up to 28% of customers believing that their disposable incomes will fall during the course of the next 12 months.

With this in mind, now may be one of those occasions where citizens would benefit directly from sage financial advice. But when else should you seek out a financial adviser, and how can these experts assist you in certain scenarios?

Growing an Investment Portfolio

In order to optimise their income, a growing number of people are investing their savings rather than committing them to standard bank accounts with minimal rates of interest.

However, if you’re thinking of investing in assets such as shares, bonds or similar entities but have little experience of the financial markets, you may want to liaise with an investment management firm that can provide actionable advice.

After all, many of these investment and trading products are harder to understand than simple savings vehicles, whilst the volatility associated with certain markets can also place your hard-earned capital at risk without the necessary provisions.

Boosting your Pension and Saving Towards your Retirement

Seniour Women Calculating Finances

Whether you’re approaching the end of your career or have turned 30 and are beginning to plan for your long-term financial future, there’s never a wrong time to build a viable pension plan.

Citizens are increasingly unwilling to rely solely on their workplace pensions and diminishing state resources, however, creating a scenario where they look to invest their capital in private pension plans.

If you do follow this course of action, you should consider liaising with a financial advisor to help identify the right type of fund and create a structure that suits your level of financial knowledge and experience.

At the same time, you’ll need advice to merge different workplace and private pensions into one resource, particularly if you want to reduce fees and make the most of your existing capital.

Spending Your Inheritance Wisely

Whilst the average inheritance in the UK is only £11,000 (peaking at £33,000 for those approaching retirement), these numbers represent considerable sums of money when delivered in a lump sum.

With this in mind, you may need to seek out expert financial guidance when coming into a windfall, particularly if you intend to minimise your tax burden and invest the capital wisely.

At present, the current inheritance tax threshold is £325,000 per person, and you won’t pay anything to the taxman on amounts that are lower than this sum.

However, estates worth more than this amount are subject to a 40% tax rate, so as a beneficiary you’ll need to seek out advice that enables you to legally minimise your tax liability and make the most of your windfall.

About author

Poppy loves personal finance almost as much as she loves her two cats, Tif and Taz.
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