Video:

Observed-changes-to-the-financial-planning-and-savings-industry

Informed financial planning industry trends

Author: Paul Garwood, James Kirk (yBC.tv)

Categories: Getting advice, Personal Finance
Tags: commissions
The informed financial planning industry is in a "in a state of flux." In this TV show Paul Garwood explains the changes he has observed.

Informed financial planning: Changes to planning and savings

I think one of the things we’ve had over the last 10 or 15 years is a change in the mentality towards advisers. But I think it’s fair to say that those individuals who have always taken advice with reputable advisors, are now benefiting from the advice that they have taken over the years. They have in some ways been, if you like, in the past, sold savings plans. And my experience is that that has been a very good thing, some of the savings plans that were recommended during the 1980s and early 1990s have grown to significant values since then. I think unfortunately the industry, the financial planning and savings industry is tainted a little by some advisors who perhaps don’t necessarily put their clients’ interest first. They might put their own interest first. And I think that that to a certain extent is has been motivated by the way that individuals were in the past remunerated for selling financial products by commissions. We’ve seen a change in that as of the beginning of this year, there are no more commissions on financial products. Now, that should in theory mean that people are getting objective advice. But on the other side of the coin, unfortunately they will be individuals who won’t be able to afford or won’t see the benefits of paying for advice. Now, I think that could lead to a situation where we don’t have in 20 or 30 years’ time as many people in the position now because they were sold products 20 years ago. So I think we’re in a state of flux and my own view is that whilst it’s a very good thing that all fees should be agreed with clients before we undertake any work for them, I think that there is a certain area of the market where that may not necessarily be of benefit. ________________________________________________________ If you found this video about informed financial planning interesting. Why not browse more TV shows on Inside Finance TV
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