We have all heard scare stories in relation to choosing an unbiased Financial Advisor. Many of these anecdotes are based on years past once the whole industry was not correctly policed. Nowadays you can find so many different ways in which it is possible to choose an IFA who is both reputable and right for you. Deciding on an IFA is arguably one of the important financial decisions you'll ever make so taking time and energy to research and compare providers is usually to be encouraged.
There are generally considered to be three different kinds of financial advisor - independent financial advisers who search the complete market for their 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 supplied by a fairly limited selection of companies.
Benefits
The true and outstanding benefit of consulting an IFA is that they can 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 entire market and can actively seek out and offer tailored solutions which will 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 suit your needs. Speak with family, friends and colleagues and ask for personal recommendations. Have a look at internet review and comparison sites. The neighborhood press can be a starting point.
When you have narrowed your search down to a few individuals, contact the IFAs of your choosing. Call them for an informal chat and to see how you feel. You need to be confident and more comfortable with whoever you choose to advise you on your finances. Remember that you're the one in charge and not another way around!
When you are talking to the IFAs of one's choice, ensure that they are completely independent. Enquire about qualifications - you shouldn't be scared. Try to find The Card Association reviews who has either a Diploma or Advanced Diploma in Financial Planning or who's an avowed or chartered financial planner. Should you be in doubt and so are searching for a testimonial it is not unfair to ask to be put in contact with other current clients. Remember that is your hard earned money we have been talking about.
Ask about fees. Do they charge per hour or do they have a commission? Perhaps this is a mixture of the two? You will need your IFA to be completely transparent. If they are 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 is doing for you always. This works both ways, always be honest about your position and you will not go wrong.