Financial advisers are professionals who advice on financial related products such as pensions, annuities, mortgages, investments and other such products. They help you to achieve your money goals in life. The advisers may charge a fee as per their experience, qualification, service and advice provided. As per the UK law the financial advisor should be authorized by financial services authority (FSA). All financial advisors are expected to act ethically and professionally.
Types of Financial Advisors
* Tied Advisors:
These advisers are tied with a particular product provider and are authorized to advice on only those products. Tied advisors are actually employees of the product provider. If the adviser believes that the product offered by him is not favorable to his client then he can refer the client to IFA
*Multi tied Advisor:
They have a wider range of products to offer from different providers. They may have insurance of a particular company and investments tied with another company. They generally receive commission from the product provider.
* Market Advisor:
Market adviser will research the entire market and will recommend the best product accordingly to their clients. They have a wide range of products to offer from different providers as well.
* Independent Financial Advisor:
They charge a fixed fee for their advice. They will also do market research and will recommend products suitable to the client. Independent finance adviser cannot receive commission or incentives.
Tips to Select the Best Financial Advisor
* Understand your requirements: It is important to understand what kind of advice you need in terms of finances. Accordingly you can select the financial advisor who has specialized in that particular product or service. If you are unsure then it is better to take the services of independent financial advisor.
* Qualifications: All advisers are required to have specified qualifications. Always check the qualifications of the financial advisor before selecting them.
* Fees: Discuss the fees charged by the advisor. If needed negotiate with them about their charges. Do not go for a cheap advisor. They might not ensure you for effective results or achievement of your financial goals.
* Writing: Get the recommendation in writing and make the adviser explain the terms and conditions and everything else related to the product.
* Personalization: Ensure that the recommendations and advised offered by the advisor is as per your requirements and to meet your monetary goals.
* Beware: Ensure that the advisor is not offering you the product just because he will be getting a higher commission or incentive on it. Read and understand everything before putting in your money.
* Fact findings: Do your research on some products you may like to invest. Also make sure your goals are clear and the advisor too understands it properly.
* Relationship: Trust is very important to build a relationship. The advisor should be trustworthy as he will be advising you on certain important financial matters that may change your life for better.