Something you should be clear about right at the first: A financial adviser is no God-send messiah whom you must bow to; neither is he doing you any one-sided favour. He has honed his skills over the years so that you can spot him right away in the crowd and while he is doing you a favour by setting your financial course right, you are also doing the same to him by giving him a chance to prove himself and add another plume to his hat. A financial adviser is no one without his clients, so deal things professionally. You have every right to know what’s behind each step he takes and guidelines that he is following; from your side, you must be fair with his fees and must not expect to move mountains in exchange of molehill-amounts. We hope that settles the doubts that made the task of choosing a suitable financial advisor seem daunting earlier in time.
It primarily depends on the kind of advice you need. The key to find the right financial adviser is getting done some work yourself, the first one of which is about knowing what you need the advice for.
Is it to manage your pensions? Year-long savings? Or, a long-term care planning? Maybe equity releases? Each of these got specialised advisers working for; the right selection will multiply your benefits many times beyond your expectations. You get specialised services even for devising your insurance plans. Home, car, travel – it can be anything.
Personal recommendations from friends or another family member are okay, as long as the recommended service provider can show a proven track record of positive accomplishments. Most of the time, it’s enough for people to built their trust upon a nice treatment; well, nicety and accounts are two different things.
It’s easiest when you are a member of a union or an affinity group and have access to financial advisers they have selected. Else, find out one on your own. Make sure all those who you would be going to and will be selecting from are under some regulatory board (like Financial Planning Services, and Bookkeeping For Small Business). It ensures the service provider will stick to the ethical means and won’t be able to jeopardise your resources with weird experimentations and whims. It binds them by rules they must follow when dealing with you. However, it also means they will have a consultation fee which you need to pay, whether you appoint him on your job later or not. Such advisers will always carry higher levels of educational qualifications.
As a rule of thumb, you must remember the following:
- You’ll find them either independent or with restricted capabilities. Independent financial advisers deal in all types of retail investment products whereas restricted advisers are restricted in the type of products they offer.
- Almost all offer holistic financial planning, which is providing advice on all aspects of required financial needs.
- Insurance brokers are also considered Financial Planning Advisor and don’t normally charge apart from the premium for an insurance product.
- The investing world runs on its own language. You must know the core ones in your type of financial advising sector so that you don’t get ridiculed with what you are saving for and the route to it. Essentials give you proper guidance and at the end, you’ll do fine.