The Minefield of Choosing an Independent Financial Advisor

We have all heard scare stories with regards to choosing an Independent Financial Advisor. Most of these anecdotes derive from years past once the whole industry had not been correctly policed. Nowadays you can find so many different ways in which you can choose an IFA who is both reputable and right for you. Deciding on an IFA is arguably one of the most important financial decisions you will ever make so taking time and energy to research and compare providers is to be encouraged.

There are generally regarded as three different kinds 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. Additionally, there are advisers who 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 will act on behalf of you the client instead of in their own interests or the people of the organisation they're selling financial loans for. The IFA will search the entire market and will 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. Consult with family, friends and colleagues and have for personal recommendations. Check out internet review and comparison sites. The local press can even be a starting point.

So when you have narrowed your search down to some individuals, contact the IFAs of one's choosing. Call them for a casual chat and to see how you feel. You have to be confident and comfortable with whoever you decide to advise you on your own finances. Remember that you're the one in control and not another way around!

When you are speaking with the IFAs of your choice, ensure that they are completely independent. Ask about qualifications - avoid being scared. Look for an adviser who has either a Diploma or Advanced Diploma in Financial Planning or who is an avowed or chartered financial planner. For anyone who is in doubt and are searching for a testimonial it is not unfair to ask to be put in touch with other current clients. Remember this is your hard earned money we are talking about.

Ask about fees. Do they charge by the hour or do they take a commission? Perhaps it is just a mixture of the two?  Click here for info  need your IFA to be completely transparent. If they are not then do not get involved.

The crucial thing is that you your client feel comfortable based on the arrangement. Ensure that all dealings and conversations are transparent and that you realize exactly what the IFA does for you at all times. This works both ways, continually be honest about your position and you may not go wrong.