Choose your adviser with care for the big decisions
MAKING big financial plans on your own, or with help from an adviser looking at only part of the picture, raises the risk of unintended consequences.
For example, failing to spot tax implications or putting too much money in one type of investment.
For people needing one-off, low or no-cost advice for a more straightforward financial concern – such as a mortgage – a restricted adviser can make sense. Many are knowledgeable and make honest, sensible recommendations.
But for those with savings and investments, pensions, property and who are planning their future, independent professional expertise becomes more important.
An independent adviser looks across your entire financial position – including your preferences, ambitions, concerns and likely future costs. He or she can make or save you more money than you would flying solo, and navigate tax traps.
Your adviser acts as ‘mother’ to your wealth, so it makes sense to choose one carefully.
Karen Barrett is chief executive and founder of website unbiased, which match-makes consumers and independent financial advisers. Her website’s directory lists 25,000 professionals in the UK, of which 16,000 are independent and completely unrestricted in the advice they provide.
Its restricted advisers are limited by specialism, but search the whole market for products.
Barrett says: ‘Banks are trusted by many to give advice because people are in contact with them day to day and they are brands that people are familiar with.
‘But don’t put all your eggs in one basket – get advice from somewhere else.’
She says people needing advice should think about what they want and need before searching and then research what to expect ahead of any initial meeting. Unbiased offers online guides showing what to expect and what to ask.
Barrett says: ‘Independent advisers can hold your hand through a decision-making process and not only do you make the right decision, you feel confident about it being the right one.’
There are plenty of crooks who will paint themselves as reputable advisers but who are far from being so.
Ensure the professional you pick is regulated by the Financial Conduct Authority by checking its register at register.fca.org.uk or by calling 0800 111 6768.
Advisers should be qualified at level four or higher under the Qualifications and Credit Framework. They must also be able to show evidence of an annual Statement of Professional Standing. For more information visit fca.org.uk/consumers/whatask-adviser.
Barrett adds: ‘Do not be afraid to ask your adviser how they plan to save or make you money, and how they will add value.
‘You can also pay how you want – via a monthly retainer, for example, or for a one-off project.’
Other websites that can help link you with an adviser include vouchedfor.co.uk and yourmoney from The Personal Finance Society at thepfs.org/yourmoney. You can also call unbiased’s helpdesk on 0800 023 6868.