1. SAVINGS AND INVESTMENT IN CONTEXT
1.1 The Need for Advice
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The extent of advice needed will only be revealed during the fact
find and needs analysis stages. Amongst other things, a full fact
find and analysis will reveal shortfalls in:-
- Income.
- Capital.
- Commitment to action i.e. financial planning.
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Where there is lack of commitment, this is often because of:-
- Lack of knowledge of the planning possibilities.
- Lack of knowledge of the potential financial problems.
- Lack of awareness of existing financial problems.
- Lack of knowledge to be able to establish risk profile, affordability
of options and priorities.
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Part of the adviser's role is to awaken the client to the potential
shortcomings in the existing financial situation, so that advice
can be sought before taking further actions which could make the
situation worse.
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The adviser will also provide general advice and guidance on prioritising
and balancing the proposed plan or plans i.e. spread of investment
types, getting the timing right, major expenditure, ongoing savings,
establishing an emergency fund.
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Once general plans have been laid, specific actions may be taken
in the selection of products and providers.
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The very least a fact find and needs analysis can produce is a
review of a well balanced action plan and reassurance to the client
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