Financial planning and the products that are on offer from the various financial institutions carry a commission for the financial planners or agents that sell these products and of course will always find a way to encourage you to take a product that both serves your needs but at the same time offers a higher commission above a similar lower commission product. This is not to say that the financial product is any better or worse than the other, financial planners that derive an income from commissions are entitles to make a living.
Using a fee based financial planner to help you determine a strategy for your long term investments is a very good idea in that the advice you receive will be completely impartial. Fee based financial planning experts charge for their time and expertise to put together a financial plan without actually selling you the products and hence will not earn a commission whether or not you choose to take their advice. These highly knowledgeable and experienced financial planners will go through a series of questions and answer sessions with you to determine your appetite for risk, your desired income and capital requirement at retirement age along with a host of other essential elements that will enable him to draw up a financial plan for you.
The plan will include short term, medium term and long term investment strategies designed to meet your financial goals and will also include scenarios that give a clear picture of what to expect should you take the advice offered. Your financial planner will include Tax advice and the best way to invest your retirement savings in a tax efficient manner. Tax considerations are extremely important parts of financial planning and investments that are structured to attract the least taxation can have a dramatic effect on both your capital and retirement income.
Estate planning is also a vital part of your financial planning exercise that needs to be done with your fee based financial planner to ensure that your policies beneficiary information is correct and that your will is up to date and correctly signed. Many a time, people die without a legal last will and testament which results in their assets being transferred into their estates leaving their loved ones dealing with the courts to straighten out their affairs.
Consult a qualified fee based financial planner and get your financial future on the right track.