Choosing a Financial Adviser
Are you considering hiring a financial adviser to assist you with your financial matters? A professional financial expert can help you manage your wealth and savings. They can also help you with your investments and make sure you are on track for retirement. Before you hire a financial adviser, however, there are a few things you should consider. The following guide covers some of the key things you need to think about when making a choice of financial adviser. Read on to learn more about financial advisers, what they do, and what things you should consider before hiring one.
What Does a Financial Adviser do?
A financial adviser provides advice and services related to financial planning and investments. These professionals assist in matters of wealth management and personal finance. They can help keep your savings on track and meet your financial goals. Financial advisers can usually help you with any of the following:
- Personal finance
- Wealth management
- Debt assistance
- Funeral planning
- Life insurance
- Annuity assistance
- Pension Advice
- Long Term Care Assistance
Professional financial experts help in these areas, and many more besides. Always look for a financial adviser that offers the specific services you are looking for.
Things to Consider When Choosing a Financial Adviser
Many people choose to hire financial service experts to assist them with their financial plans. These professionals can be very helpful with your savings, investments, and financial plans for the future. Before selecting one to hire, there are a few things you should consider. The following section covers several important things to think about when choosing a financial adviser.
Does location matter when selecting a financial adviser? The answer is that it depends. If you are the type of person who prefers to conduct their business in person, then you should search for a financial adviser near you.
If you won’t be needing to meet in person with your financial adviser, then it ultimately doesn’t matter where they are located. After the initial meeting, most financial advisers can do their work from anywhere, with no need for face-to-face meetings with their clients. This makes it much easier for you when choosing a financial adviser, since you won’t have to choose one that is local to you. This way, it is easier to find a financial adviser that better suits your needs and offers the services you are looking for.
Size of Firm
Should you choose a financial adviser from a large firm or a small firm? Which is better? The truth is, there are pros and cons to each. It really all boils down to your preferences and needs. The range of services and the nature of the adviser/client relationship can be different depending on the size of the firm.
Many clients prefer the personalised services that often come with choosing a smaller financial firm, however a smaller firm may have more limited resources and not be able to offer as many services as a larger firm. A larger firm will usually have plenty of resources and coverage, but may be lacking in the personalised kind of service smaller firms can offer.
You should always look for the firm that strikes the right balance for you, and has the services and personalization you require for your financial needs.
You should always double/check your financial adviser’s credentials when hiring them. Always insist on hiring a financial adviser who has been authorised by the FCA, or Financial Conduct
Authority. The FCA protects clients in the financial service industry. Look for a financial adviser who has a CII licence with levels 3-8 qualifications as laid out by the Qualifications and Credit Framework, or QCF.
Also, ask around. See who your peers recommend, and look online at financial advisers reviews and testimonials before hiring them. Consider whether you should hire a financial adviser who is qualified to give restricted advice, or if you need one who is qualified to give whole of market advice.
Responsibility as Fiduciary
A fiduciary is a person or firm who is required to act in the best interests of others. For a financial adviser, this means acting in their clients best interests with their money and investments. You will want to hire a financial adviser who takes their duty as a fiduciary seriously. Financial advisers are not always legally obligated to follow fiduciary standards. However, you can find one who meets fiduciary standards. A financial adviser who takes their fiduciary responsibility seriously will always put your interests first.
Area of Expertise
Financial advisers can be experts in particular areas. Areas of expertise include niches like affinity, values, educational, experiential, psychosocial, and technical. You will want to select a financial adviser with a niche that serves your interests. Typically financial advisers will market themselves as experts in their area of advice, so it is easy to find one to suit your needs.
Lastly, you need to understand how financial advisers are paid. There are a few different ways these professionals charge for their services. Some charge commission only, some flat rates only, and some charge a percentage of the accounts they manage, and some charge a combination of these.
Flat rates are straightforward, and there are no hidden fees. However, it can be more pricey for what you get. With a percentage of your accounts, often 1 or 2%, there is great incentive for them to perform well, and the same is true for commissions. Some financial advisers use a mix of all three kinds of fees, and this can work to your advantage. since these financial advisers often provide a wider range of services.
Financial advisers are professionals who can help you manage your wealth, your investments, and your savings. There are several things you should consider before hiring them. You should think about where they are located, the size of their firm, their credentials, whether they are a fiduciary, their niches, and how they will be paid.
Hopefully, you found this guide helpful. Financial Advisers can match you with the experts that fit your needs. Take advantage of our useful directory of experts! Visit financialadvisers.co.uk for more information, and sign up for your free consultation!