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Graduates
Becoming an IFA
The growing demand for financial advice
The government want people to look after themselves and not to rely on the State. This, coupled with a need for individuals to be financially secure and see their dreams and hopes materialise, means that IFAs are more than ever in demand to help achieve their client’s financial goals.
Where do you get financial advice?
You can buy some financial products direct from a company, but you may need the help of an adviser for others to make sure you get something that is suitable for your needs. You can get advice from banks, life assurance companies, IFAs, financial advisers, brokers etc and you'll find the scope of advice offered differs dramatically.
A tied financial adviser
Employed by one company to sell only that company's products.
A multi-tied adviser
Linked to a limited number of product providers and only offers advice on their products.A whole-of-market financial adviser
Chooses products from the whole market but is not required to offer a fee-based service.
An independent financial adviser
Chooses products from the whole market and must offer all their clients a fee based service (as well as a commission based service if the IFA chooses to offer this).
What is an IFA?
It is important that we all have a financial plan that leads us to where we want to be in life and provide the money to pay for the lifestyles we want. An Independent Financial Adviser's role is to help people achieve their financial goals in the most efficient and suitable way. These could be goals for themselves and their family, or for their business.
What does an IFA do?
An IFA reviews an individual's circumstances, understands their financial and personal objectives, identifies shortfalls in cover, identifies gaps in where they are now and where they want to be in the future, and puts a plan in place to close the gap or remove it altogether. Most IFAs keep in contact with their client revisiting them to ensure their finances are still on track or to establish if they have new goals which need to be addressed.
What sorts of things get discussed?
Everyone is different but most IFAs will look at all the need areas - money in retirement, investing for the future, protection (homes, people, income), financing property etc. They also take into account issues such as paying for university fees, long term care costs, beating the tax man (within the law), divorce, marriage, holiday homes in Spain, leaving the kids an inheritance, a retirement on the golf course etc. So they need to know all about pensions, mortgages, investments funds, investment products, income protection, critical illness cover, life cover, IHT planning, equity release, home reversions, offshore, tax exempt products and the list goes on.
And that's just if they're talking to an individual. If their service encompasses providing financial advice to corporates then there's key man insurance, premises insurance, retirement planning, loans etc too.
IFAs have a lot to talk about!
What's great about this job
Job satisfaction is huge. IFAs make a real difference to the financial wellbeing of their clients and create long standing friendships along the way. They know their clients financial situation and their aspirations so it's hard not to be interested in their lives.
IFAs are financial gurus and people go to them for advice. It's a position of responsibility as they shape financial futures. Their recommendations can change people's lives.
Most IFAs run their own business and therefore benefit from being able to manage their own time and be their own boss. Effort, expertise, qualifications, personality and knowledge determine the success of their business.
They target the people they want to do business with and can select those they have something in common with e.g. a particular area, profession, interest. They choose the service they want to offer. Many IFAs start out as generalists, i.e. they know a lot about how to meet all financial needs.
Some realise they have a flair for a particular subject e.g. pensions, tax and go on to become specialist experts by gaining the right qualifications and building their experience and a reputation for their ability.
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