Benefits Of Advice

Question 1

Benefits of financial adviser (12)

Answer 1

• help prioritise objectives
• advise on how much needs to be invested to reach objective of retiring at 60
• can use cash flow modelling to establish sustainability of they desired lifestyle based on assumptions
• ensure full use of tax exemptions and allowances to reduce tax paid
• review existing holdings
• to ensure objectives are met
• help nick decide on benefits of joining employers PMI and CIC
• ensure in the event of serious illness they have sufficient funds to maintain their desired lifestyle
• can help to establish H&W LPAs to allow N&J to make medical decisions in the event one loses mental capacity
• provide advice on Nick transferring DB scheme
• advise on IHT mitigation in second death
• advise on what assets to use for £50k for Daniel
• regular reviews to take account of changes in circumstances
• update on changes in legislation

Question 2

Benefits of regular reviews (6)

Answer 2

• advisor can react to changes in personal circumstances
• or financial circumstances
• or changes in legislation
• advise on new products
• ensure they both use their annual allowances / exemptions
• take account of changes in ATR/CFL
• ensure advice remains suitable
• build long term relationship / provide further advice