5 Steps To Picking The Right
Financial Adviser For You
Where do you start looking and what are the important benchmarks you need to consider when picking a Financial Adviser?
You will be looking to build a long-term relationship with your Financial Adviser, so you must be sure you are making the right decision.
It’s difficult to know how to start the process, but if you follow these simple steps, you will be able to pick the right adviser from the start.
Step 1: Why Do You Need A Financial adviser?
Before you start looking for a Financial adviser, you need to understand how financial advice could help you. It is important to consider that if you have larger amounts of savings and investments or high earnings, you will benefit from taking financial advice.
Likewise, inheritance money, deciding on how and when to take pension benefits are all significant events that could require professional Advice.
Alternatively, you may just want help with putting together a financial plan to make sure you achieve your goals in life, such as investing for a deposit for your first home or ensuring you are saving enough for your retirement.
Step 2: What Level Of Service Do You Need?
When you know that you need a Financial adviser, the next step is to understand the level of service you want. You may just require a one-off recommendation, for example, a holistic financial plan, investment strategy or transferring a pension.
In addition to the initial advice charge, you may require an on-going level of service.
The on-going service would typically include an annual review of the initial recommendation that was made, checking your attitude to risk hasn’t changed and a general financial update of your circumstances.
Step 3: Restricted Or Independent adviser?
Regulated advisers tend to fall into two categories – restricted or independent.
Restricted advisers usually have a selection of providers that they prefer to work with after conducting their own due diligence and research. St James’s Place and Hargreaves Lansdown are two well-known restricted advice companies.
As the name suggests, independent advisers can choose from investment products across the whole market. Due to the additional research required to select from the whole market, independent advice can cost more.
Step 4: How Do You Pay For Financial Advice?
Most advisers offer a free consultation and this is where you will find out the fees charged and services offered in more detail.
Fees can be charged at an hourly rate, a fixed fee, and percentage of money invested or commissions on insurance products.
At this point you should clearly know how much you are paying and why. Comparison of charges is an important consideration, but you may also want to look at reviews and testimonials to help with your final decision.
Step 5: Finding And Choosing An adviser
You can search for an adviser by using a free online directory.
comparefinancialadvisers.co.uk have lists of qualified financial advisers, that is easy to use.
You can search by the type of advice you want, by postcode or town you live in. To fine-tune your search, you can then filter for advisers with the highest review ratings or the closest to your home.
It would be sensible to speak with and meet with at least 3 advisers. You can then make a decision on which adviser meets your requirements and your gut instinct is also worth listening to.
It is important that you like and feel comfortable with the adviser you choose, as you will be disclosing a lot of personal information.