They are probably the three most important letters for anyone dealing in the area of financial services and products, whether as a consumer or a fellow professional. The IFA – or Independent Financial Adviser, to give the acronym its full title – is probably the most central and key player in the market for financial products and services. Without the IFA, financial service providers would be at a loss to accurately and honestly promoting and selling their goods; and without it, the consumer would be at a loss when it comes to choosing between such a huge array of different financial services and products. The IFA software is a kingpin in the relationship between financial services providers and their customers.
IFA helps companies use monetary resources to the best effect. One should have specific financial goals he wants to reach in terms of his savings and retirement.
Every person’s financial goals are quite different – for some individuals it will be to give up the work and retire early, or even save a lump sum to achieve a life goal. Parentsmay want put some money aside for their kids school fees or to benefit their family members in a way for instance collage fees or help with purchasing their first car.
The first step when it comes to financial planning is to set out the short, medium and even long terms goals. The IFA software will help in shaping one’s plan and establish what resources he has to achieve them. It may be the case of retiring early (assuming one is saving into a pension already) one may need to increase his monthlypension contributions.
At this stage it may be more the case of a reality check, without enough resources (income) you may not be able to achieve everything you want.
If your main goal is to send the children to private collage you will have to save in order to achieve this and in most cases this can mean sacrificing other goals.
Your IFA software will help in shaping the financial plan, review your current monetary resources to use to achieve the goals and of course help in saving in the most tax efficient way.
Overview of what IFA should do?
1. Hold several meetings to shape the life goals and help in ‘discovering’ what you want in the short, medium or long term. 2. Review the monetary resources and correlate them to the life goals. 3. Reality Check! Is the plan achievable? 4. Short Falls- Identify the shortfalls focusing on pension plans and saving plans. 5. Implement various changes and selecting suitable tax efficient services to help achieve the goals. 7. Review – Yearly reviews (at least) to ensure your plan is on track and allow for the ‘life changes’ that can affect the goals.
Using an IFA software should not be about buyingpensions or savings plan or sourcing the cheapest t life insurance – A person should be able to do this type of simple planning himself with the help of on line resources.