7 Steps to Choose an Independent Financial Adviser

Posted: 1st Dec 2017 by Nick Lawson Independent Financial Adviser, Inheritance Tax, Life Cover, Pensions, Retirement, Wealth Management

What should you consider when choosing an Independent Financial Adviser?

Whatever stage you are in your life, the advantages of taking control of your finances can never be underestimated for enjoying your life to the full and sleeping soundly at night!

So you’ve decided the time may be right to take positive action to plan for your financial future, and you are thinking about using an independent financial adviser to help you.

7 Steps to Choose an Independent Financial Adviser

Ask family and friends for recommendations

A good place to start is to ask for recommendations from family or friends, particularly those who may be at a similar life stage to you. Financial advice sites such as unbiased or vouchedfor give you the option to search for recommended advisers and to review testimonials.

Check what qualifications and experience an independent financial adviser has

Check that an independent financial adviser is qualified to offer advice. The company or individual needs to be authorised and regulated by the Financial Conduct Authority. Some financial advisers specialise in advice in certain areas for example Estate Planning.

Gather your financial information and thoughts

Gather together any of your financial information on any pensions, investments, savings, mortgages, life insurance etc so that you know where you are now, to help shape your thoughts for the future financial plans you want to discuss.

Take advantage of a free initial consultation

As with any new relationship, it is important to arrange an initial meeting to discuss your requirements and to find out if you can understand each other and would enjoy working together. This is usually carried out during an initial free consultation at your home or the business premises.

Discussing your investment approach

Look for an adviser who listens to your requirements as well as talking about how they may be able to help. An independent financial adviser may ask you to complete an investment profile which helps to ensure any investment planning is consistent with your risk tolerance and goals.

Find out how you will pay for their services.

An independent financial adviser should clearly tell you in writing how they will be paid for the services to be provided. They should provide you with a menu of alternatives. Advisers can be paid in several ways:

A salary paid by the company for which the adviser works.
Fees based on an hourly rate, a flat rate, or on a percentage of your assets and/or income. Any commission received from providers or other third parties may reduce the payment of fees.
Commissions paid by a third party from the products recommended to you to implement the Financial Planning recommendations. This generally only applies to life assurance policies.

Go with your gut instinct

As with most things in life, once you have carried out all the steps above, make sure you feel comfortable with your decision. The decision made will hopefully be a rewarding relationship of openness and trust with your independent financial adviser, which will see you making a difference to your financial future.