Will consulting an IFA grow your wealth?

30th March 2020 | Financial Advice

According to research conducted by Vanguard, a large mutual fund management group, individuals who take independent financial advice grow their wealth more quickly than those who go it alone.

Vanguard looked at financial markets in North America, Australia and the UK over a decade. They concluded that independent financial advice could help you grow your wealth by an average of 3% per year compared with those that invest without advice.

How do IFAs help you grow your wealth?

Independent Financial Advisors (IFAs) do this in a variety of ways. Here are some of the key approaches IFAs use to add value.

Independent financial advice

IFAs are uniquely positioned to offer expert advice that is not tied to particular funds or investment products. IFAs offer whole of market advice, which means they have access to a full range of investment options. As a result, you can be sure you will have access to the right products to achieve your financial goals.

Customized guidance

IFAs can help with a wide range of financial situations and provide cohesive independent financial advice to help you achieve your financial goals. They have vast experience in managing assets, retirement planning, tax planning and estate planning. The advice they provide is customized to meet your individual financial circumstances and attitude to risk.

Long term planning

Working with an IFA can help you create a cohesive financial plan. This plan can help you reach short term financial goals as well as providing for a secure financial future.

Building a relationship

When you work with an IFA, you will build a relationship with them. They will understand your financial situation clearly, including your financial goals and your attitude to risk. This means their independent financial advice will be tailored to you. Also, they will be best positioned to advise you when your circumstances alter. This gives you the added security that you have an expert on hand to guide you through times of change.

Seizing opportunities

Because your financial adviser understands both your circumstances and the market in detail, they will be alert to opportunities that could benefit you. Therefore, expert independent financial advice helps you seize opportunities that could otherwise pass you by.

Keep your investment on track

By working with an IFA on a regular basis, you can ensure your financial goals stay on track. In an ever-changing financial market, this ensures that your investments will adapt. Doing this yourself would take a lot of research and time.

IFAs are always up-to-date with markets and can pass this advice on at the right time, keeping your portfolio on track over the months and years. IFAs scour the market to find the best value and ensure their clients benefit from this research.

Tax planning

An IFA can ensure you are taking advantage of all tax reliefs and allowances, boosting your savings and investments and avoiding the unnecessary erosion of your wealth through tax.

Avoid pitfalls

The experience that IFAs bring to the table can ensure you don’t fall into common pitfalls of investing. They can provide expert independent financial advice on complex situations to guide you in the best way possible. In addition, they can ensure you don’t make mistakes that could lose money.

Increase security

An IFA can ensure your investments are as secure as is reasonably possible by providing due diligence on all investments. In addition, they can take steps to increase your financial security, such as, for example, by increasing the amount of your portfolio protected under the Financial Services Compensation Scheme (FSCS).

Overall, consulting an IFA makes good financial sense.

If you are interested in working with an expert IFA to grow your wealth, contact us at WIS Wealth on 0203 0111 898 for an initial consultation.

The benefits to the treatment of tax will depend on your individual circumstances and may be subject to change in the future. The Financial Conduct Authority (FCA) do not regulate Inheritance Tax Planning, Tax and Trusts.