What are the situations when I need to seek financial advice?

Managing your finances effectively is one of the most complex tasks, especially when there might be numerous challenges or obstacles to overcome.

No matter the situation, one of the best things you can do is to seek guidance from an expert.

To show you how crucial financial advice is, this article will take you through a few common situations where financial advice is vital, and show how it can help you build your wealth effectively.

When might you need financial advice?

When looking to build your wealth for the future

One of the most important scenarios in which to consider financial advice is when you’re looking to build your wealth for the future. Many people have the desire to grow their wealth, whether it might be to sustain their lifestyle, or to develop more wealth resilience. Either way, expert advice can be integral in helping you do this.

Your financial adviser will help you evaluate your current financial circumstance, and see what opportunities you have to build your wealth in the most efficient way possible. They can then help you create a financial plan to outline this clearly and strategically.

They’ll take into account any concerns or challenges you might be facing, and factor these into your approach. Your plan to build your wealth can involve things such as exploring new investments which give the right balance of risk and potential returns in line with your current circumstances.

When approaching retirement

Another important situation when you may need to seek financial advice is when you’re approaching retirement.

There’s much to consider when trying to grow your pension savings, and an expert wealth manager could be a valuable guide for your approach.

Your adviser will help you establish your retirement goals as the foundation of your plan. These can include things such as the age you want to retire, how much you want in your pension pot when you retire and the retirement lifestyle you want, for example.

Your adviser can help you structure your pension contributions to help you grow your wealth efficiently and reach your goals. This can involve helping you shelter as much of your money from tax as possible, making the most of your allowances:

  • The annual pension allowance – £40,000 (as of the current tax year 2022/2023)
  • The lifetime pension allowance – £1,073,100 (as of the current tax year)

When inheriting an estate

You may also need to seek financial advice if you inherit an estate. Managing an estate is a complex process, and an adviser can ensure you effectively navigate things such as inheritance tax (IHT) when receiving the money or assets.

For instance, your adviser can help you manage the IHT threshold, which as of the current tax year, is £325,000. This means any value of an estate up to this amount can be sheltered from tax when inherited – anything above this amount is taxed at a rate of 40%.

There are many other options your adviser might explore with you to show you the most tax-efficient ways you can approach an inheritance. This could include taper relief on any gifts, or the exemption of IHT when leaving an estate to a civil partner or spouse.

As you can see, in multiple scenarios, an expert financial adviser could be pivotal in helping you achieve the most successful financial outcome. 

Contact your wealth management service now for professional guidance and to start planning effectively for your own situation.

Please note, the value of your investments can go down as well as up.

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