We have all heard scare stories with regards to choosing an Independent Financial Advisor. Most of these anecdotes are based on years past once the whole industry was not correctly policed. Nowadays you can find so many different ways that it is possible to choose an IFA who is both reputable and right for you. Deciding on an IFA is arguably just about 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 because of their clients, tied advisers who operate solely on behalf of a particular company, for instance a bank. There are also advisers who are multi-tied and who sell products supplied by a fairly limited selection of companies.
Benefits
The real and outstanding benefit of consulting an IFA is that they can act on behalf of you the client rather than in their own interests or the ones of the organisation they're selling financial products for. The IFA will search the entire market and will actively seek out and offer tailored solutions that may suit you the customers needs.
So what do you need to do?
One of the first steps you need to take when looking for an IFA is to select a couple of providers which look likeliest to suit your needs. Speak with family, friends and colleagues and ask for personal recommendations. Check out money and comparison sites. The neighborhood press may also be a starting point.
When you have narrowed your search down to a few individuals, contact the IFAs of your choosing. Call them for an informal chat and to observe how you feel. You have to be confident and more comfortable with whoever you decide to advise you on your finances. Remember that you are the one in charge and not the other way around!
When you are talking to the IFAs of one's choice, ensure that they're completely independent. Ask about qualifications - don't be scared. Look for an adviser who has the Diploma or Advanced Diploma in Financial Planning or who's a certified or chartered financial planner. If you are in doubt and are looking for a testimonial it is not unfair to ask to be put in touch with other current clients. Remember that is your dollars we have been talking about.
Enquire about fees. Do they charge per hour or do they take a commission? Perhaps it is just a mixture of the two? You need your IFA to be completely transparent. If they're not then do not get involved.
The crucial thing is that you the client feel comfortable based on the arrangement. Make sure that all dealings and conversations are transparent and that you realize just what the IFA is doing for you constantly. This works both ways, continually be honest about your situation and you may not go wrong.