The Minefield of Choosing an Independent Financial Advisor

We have all heard scare stories with regards to choosing an Independent Financial Advisor. Many of these anecdotes derive from years past once the whole industry was not correctly policed. Nowadays there are so many different ways that you can choose an IFA who is both reputable and right for you personally. Choosing an IFA is arguably just about the most important financial decisions you'll ever make so taking time and energy to research and compare providers is usually to be encouraged.

There are generally regarded as three different kinds of financial advisor - independent financial advisers who search the complete market for his or her clients, tied advisers who operate solely with respect to a particular company, for example a bank. Additionally, there are  financial advisors central coast  who are multi-tied and who sell products provided by a fairly limited selection of companies.

Benefits

The real and outstanding advantage of consulting an IFA is that they will act with respect to 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 that will suit you the customers needs.

So what should you do?

Among the first steps you need to take when looking for an IFA is to select a couple of providers which look likeliest to meet your requirements. Speak with family, friends and colleagues and have for personal recommendations. Check out internet review and comparison sites. The local press can be a starting point.

So when you have narrowed your search right down to a few individuals, contact the IFAs of your choosing. Call them for a casual chat and to observe how you feel. You should be confident and comfortable with whoever you choose to advise you on your own finances. Remember that you are the one in control and not another way around!

When you are talking to the IFAs of your choice, ensure that they are completely independent. Ask about qualifications - you shouldn't be scared. Try to find an adviser who has either a Diploma or Advanced Diploma in Financial Planning or who is a certified or chartered financial planner. When you are in doubt and so are looking 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 have been talking about.

Ask about fees. Do they charge per hour or do they take a commission? Perhaps this is a mixture of both? You need your IFA to be completely transparent. If they are not then do not get involved.

The crucial thing is that you the client feel comfortable with regards to the arrangement. Ensure that all dealings and conversations are transparent and that you understand exactly what the IFA does for you constantly. This works both ways, always be honest about your position and you will not go wrong.