We have all heard scare stories with regards to choosing an unbiased Financial Advisor. Many of these anecdotes derive from years past once the whole industry had not been correctly policed. Nowadays you can find so many different ways that it is possible to choose an IFA who is both reputable and right for you personally. Deciding on an IFA is arguably the most important financial decisions you'll ever make so taking time to research and compare providers is usually to be encouraged.
There are generally regarded as three different types 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. There are also advisers who are multi-tied and who sell products supplied by a fairly limited selection of companies.
Benefits
The true and outstanding benefit of consulting an IFA is that they can act with respect to you the client instead of within 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 provide tailored solutions that may suit you the clients needs.
So what should you do?
One of the first steps you need to take when looking for an IFA would be to select a handful of providers which look likeliest to meet your requirements. Consult with family, friends and colleagues and have for personal recommendations. Have a look at internet review and comparison sites. The neighborhood press can also be a starting point.
When you have narrowed your search right down to some individuals, contact the IFAs of your choosing. Call them for a casual chat and to see how you feel. You have to be confident and comfortable with whoever you choose to advise you on your own finances. Remember that you're the one in control and not the other way around!
When you are speaking with the IFAs of your choice, ensure that they're completely independent. Ask about qualifications - avoid being scared. Try to find an adviser who has either a Diploma or Advanced Diploma in Financial Planning or who is a certified or chartered financial planner. If you are in doubt and are searching for a testimonial it isn't unfair to ask to be placed in touch with other current clients. Remember that is your dollars we are talking about.
Enquire about fees. Do merchant services agent charge per hour or do they have a commission? Perhaps it is a mixture of the two? You will need your IFA to be completely transparent. If they're not then don't get involved.
The main thing is that you the client feel comfortable with regards to the arrangement. Make sure that all dealings and conversations are transparent and that you realize exactly what the IFA does for you constantly. This works both ways, always be honest about your situation and you may not go wrong.
