Seek professional advice from a qualified financial advisor is often a smart step in getting the most out of your money. But many of us may be confused about what we should consider when choosing a financial advisor.
Here are some key questions you might want to ask when making a decision:
Does your chosen advisor specialize in the field for which you want advice (annuities, mortgages, pensions, etc.)?
Some consultants are expert in one area, others cover a variety of fields, choosing the right one depends on the complexity of the advice you are looking for.
Is your chosen advisor authorized by the Financial Services Authority? Unregistered companies must be avoided.
Is your chosen advisor independent?
Financial advisors enjoy a different level of independence. An independent financial advisor must provide you with services tailored to your needs by offering a variety of products from all markets.
If your advisor is not independent, they can usually only give advice about their own products, and this greatly limits your choices.
Although most advisors will offer a free initial consultation, it is important for you to fully understand what future costs will be, and agree whether they will be paid on a fixed fee or commission basis.
Trust is important. Your financial advisor can help you make some of the most important financial decisions in your life, so you must feel really comfortable with those decisions.