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 had not been correctly policed. Nowadays there are so many different ways that it is possible to choose an IFA who's both reputable and right for you personally. Deciding on an IFA is arguably one of the important financial decisions you'll ever make so taking time to research and compare providers is to be encouraged.
There are generally regarded as three different types of financial advisor - independent financial advisers who search the entire market for their clients, tied advisers who operate solely on behalf of a particular company, for instance a bank. There are also advisers that 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 rather than in their own interests or the ones of the organisation they're selling financial products for. The IFA will search the entire market and can actively seek out and offer tailored solutions that will suit you the clients needs.
So what do you need to do?
One of the first steps you need to take when searching for an IFA would be to select a couple of providers which look likeliest to suit your needs. Consult with family, friends and colleagues and ask for personal recommendations. Check out internet review and comparison sites. The local press can be a starting point.
So 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 should be confident and comfortable with whoever you choose to advise you on your own finances. Remember that you are the one in control and not the other way around!
When you are talking to the IFAs of one's choice, ensure that they're completely independent. Enquire about qualifications - avoid being scared. Try to find Browse this site who has either a Diploma or Advanced Diploma in Financial Planning or who is an avowed or chartered financial planner. If you are in doubt and so are looking for a testimonial it is not unfair to ask to be put in contact with other current clients. Remember this is your dollars we are talking about.
Enquire about fees. Do they charge per hour or do they take a commission? Perhaps this can be a mixture of the two? You will need your IFA to be completely transparent. If they're not then do not get involved.
The main thing is that you your 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 always. This works both ways, always be honest about your position and you may not go wrong.