The Minefield of Choosing an Independent Financial Advisor
We have all heard scare stories with regards to choosing an unbiased Financial Advisor. Most of these anecdotes derive from years past when the whole industry was not correctly policed. Nowadays there are so many different ways in which you can choose an IFA who is both reputable and right for you. Choosing an IFA is arguably one of the important financial decisions you will ever make so taking time and energy to research and compare providers is to be encouraged.
There are generally considered to be three different kinds of financial advisor - independent financial advisers who search the complete market for his or her clients, tied advisers who operate solely on behalf of a particular company, for example a bank. Additionally, there are advisers that are multi-tied and who sell products provided by a fairly limited range of companies.
Benefits
The real and outstanding advantage of consulting an IFA is that they will act on behalf of you the client rather than in their own interests or the people of the organisation they are selling financial products for. The IFA will search the complete market and can actively seek out and offer tailored solutions that may suit you the customers needs.
So what do you need to do?
One of the first steps you will need to take when searching for an IFA is to select a couple of providers which look likeliest to meet your requirements. Speak with family, friends and colleagues and have for personal recommendations. Check out internet review and comparison sites. The neighborhood press can be a starting point.
When you have narrowed your search down to some individuals, contact the IFAs of your choosing. Call them for an informal chat and to observe how you feel. You have to be confident and more comfortable with whoever you decide to advise you on your finances. Remember that you're the one in control and not the other way around!
When you are talking to the IFAs of your choice, ensure that they're completely independent. Enquire about qualifications - avoid being scared. Look for an adviser who has either a Diploma or Advanced Diploma in Financial Planning or who's an avowed or chartered financial planner. If you are in doubt and are searching for a testimonial it is not unfair to ask to be put in contact with other current clients. Remember Browse around this site is your dollars we have been talking about.
Enquire about fees. Do they charge by the hour or do they take a commission? Perhaps this can be a mixture of both? You need your IFA to be completely transparent. If they're not then do not get involved.
The crucial thing is that you your client feel comfortable based on the arrangement. Make sure that all dealings and conversations are transparent and that you understand exactly what the IFA is doing for you at all times. This works both ways, continually be honest about your situation and you will not go wrong.