Q Does it pay to use a fi­nan­cial adviser?

Good Housekeeping (UK) - - Good Advice -

AIt can be hard to trust some­one with your fi­nances and the costs might seem off-putting, but the ben­e­fits are clear – peo­ple who take ad­vice on pen­sions, for in­stance, have £48,279 more, on av­er­age, in their pot than those who don’t, ac­cord­ing to re­search by un­bi­ased.co.uk. Women are less likely than men to seek pro­fes­sional fi­nan­cial ad­vice. Here are three tips to get you started…

WORK OUT WHAT TYPE OF AD­VICE YOU NEED Are you look­ing for ad­vice on a mort­gage? Or are you com­ing up to re­tire­ment and not sure what to do? Maybe you’re even in­ter­ested in in­vest­ing in stocks and shares. The type of ad­vice you need will de­ter­mine which adviser is right for you. Some are spe­cial­ists, such as mort­gage ad­vis­ers, while oth­ers will be able to look at your en­tire fi­nances.

GO IN­DE­PEN­DENT Fi­nan­cial ad­vis­ers will pro­vide ei­ther ‘in­de­pen­dent’ or ‘re­stricted’ ad­vice. While a re­stricted adviser can be very help­ful on spe­cific prod­ucts or providers, they will not be able to give whole of mar­ket ad­vice. In­de­pen­dent fi­nan­cial ad­vis­ers or IFAS can rec­om­mend all types of prod­ucts that might meet your needs. They will also con­sider prod­ucts from all firms across the mar­ket, and have to give un­bi­ased and un­re­stricted ad­vice.

Fi­nan­cial ad­vis­ers have to make it clear on their web­sites whether they pro­vide in­de­pen­dent or re­stricted ad­vice and what this means. Ask for fur­ther in­for­ma­tion if you are not sure.

In­de­pen­dent fi­nan­cial ad­vice will have a fee at­tached. Hourly charges can be any­thing from £50 to £250. Some re­stricted ad­vis­ers will also charge – so check the cost with the firm you are plan­ning to use be­fore you set up a meet­ing.

MAKE USE OF FREE RE­SOURCES There are a lot of free re­sources avail­able that can help you find the right fi­nan­cial adviser. Many IFAS ad­ver­tise in lo­cal news­pa­pers and you will also find list­ings in the phone book. And, of course, you can also search for an adviser on­line.

Web­sites such as un­bi­ased.co.uk and vouched­for.co.uk let you search for a lo­cal fi­nan­cial adviser and will tell you what ser­vices they of­fer. Un­bi­ased will let you search for both in­de­pen­dent and re­stricted ad­vis­ers, while Vouched­for only lets you look for IFAS.

Once you have cho­sen your fi­nan­cial adviser, check the Fi­nan­cial Con­duct Au­thor­ity’s IFA reg­is­ter (reg­is­ter.fca.org.uk) to make sure your cho­sen provider is reg­u­lated and ap­proved. Take all your up-to-date fi­nan­cial state­ments and rel­e­vant in­for­ma­tion to en­sure that you get the most out of your ap­point­ment.

Con­tact a fi­nan­cial adviser to help you make the most of your money

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.