Three things to look for in a financial adviser

19 September 2017 | Portfolio construction


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Tania Allerton: For most of us, good financial advice can make a significant difference to our long-term well-being.

My name is Tania Allerton. I work at Vanguard.

What are some of the main benefits a financial adviser can offer? Let's look at three of them: Putting together a portfolio; minimising costs; and helping us to develop good investment behaviours.

Let's think about an investment portfolio. A good investment adviser will analyse your current financial situation. From that, he or she can help you to understand what are realistic investment objectives. How much will you need to invest? What are the risks you will need to bear?

It's you, your family, your life goals and your ability to bear short-term risk that are at the heart of a truly great investment portfolio.

What will it cost? The cost of an investment fund is not always obvious. There lots of things to pay for and different services are charged differently. Some are taken from the fund, and some are charged to your bank account.

These charges can look small, but they compound over many years and can make a big difference. Your financial adviser should understand the cost of investment and know how to minimise the impact.

What happens when the market falls? Should you sell? Or buy? What if you see that American shares are rising sharply? How should deal with events like Brexit? Your financial adviser should know the right way for you to deal with events of this sort. Some of us like to play it safe. Some of us are prepared to take more risk. Your adviser will help you to understand the right approach for you, for your circumstances and achieving your life goals.

The right portfolio. Minimising costs. Good investment behaviours. These are three of the things you should look for in a financial adviser. They could make a big difference to your life.

Thank you for watching.

Important information:

This video is directed at professional investors and should not be distributed to, or relied upon by retail investors.

It is designed for use by, and is directed only at persons resident in the UK.

This video was produced by Vanguard Asset Management, Ltd. It is for educational purposes only and is not a recommendation or solicitation to buy or sell investments.

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

The opinions expressed in this video are those of the individual speaker and may not be representative of Vanguard Asset Management, Ltd.

Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority.


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