Investment is about risk. While the extent of financial risk any one of us is prepared to take is very much a personal issue, we are fortunate in the UK of having a network of Independent Financial Advisers to consult and to help us consider whether or not to invest – especially if we are doing so for the first time. The network of advisers means that there is certain to be at least one near to where you live, providing a service that could genuinely be termed “investment advice, UK”.
What is the risk?
If investment is about risk, what exactly does that risk amount to and how much of it am I prepared to bear? The way to approach this sort of question is to ask yourself how relaxed you could be in suffering a loss in the short term so that you retained the chance of making gains in the longer term. In other words, could you face the prospect of some temporary fall in the value of your investment without going into a panic? Would you be prepared to stick it out, holding on in the confident expectation that the future will see that investment’s rise again to still greater heights?
If you have honestly addressed those sorts of questions and the answer is a resounding “no, I do not want to risk seeing the value of my investment fall at all”, then investment in the stock market – whether directly as the owner of individual company shares or indirectly as the owner of units in a collective trust fund – is not going to rest easy with you. If you have been able to answer in the affirmative, however, then the stock market offers just the arena in which you can risk your investment.
No need to go it alone
Although you are prepared to risk an investment, you do not have to face the unknown totally alone. To help you assess the risks and to decide whether they really are the ones you want to be taking, a financial adviser will assume the duty of recommending particular investments only after having assessed their suitability for your particular needs. To assist him, you will be asked key questions about your financial starting point, and your longer term goals and ambitions.
The network of “investment advice, UK” is an extensive and varied one, peopled by a number of different types of financial adviser:
Independent – an ability to recommend products across the entire market and offering the client the option to pay for the advice received;
Whole of market – recommending products from across the whole market, but in return for a commission earned on the products thus sold;
Multi-tied – recommending products from a specific list of financial providers; and
Single-tied – recommending products from a single financial provider.
Whichever type of financial adviser you feel is the best suited and qualified for your own particular investment preferences, you will find the investment advice, UK, network has spread to an office close to your home.
Sean Horton is a Director of Enhanced Wealth, a whole of market mortgage broker and IFA specialising in mortgage advice and the associated areas of investment advice UK, protection, and life cover.