IT'S all very well saying you should see an Independent Financial
Adviser, but how do you go about finding one that is right for you?
After all, talking about money and private financial affairs can feel
almost as personal as talking about your health.
A gruff deskside manner could be as off-putting as a poor bedside one,
lessening one of the advantages of using an IFA; the ability to discuss
all aspects of your personal finances.
Personal recommendation by a friend or colleague whose opinion you
trust is the best start. As a substitute or as a supplement to this you
can use the IFA Promotion hotline service on 0483 461 461.
More than 200,000 people have already called the number. Callers
receive an information pack with brief profiles of three IFAs in their
area. Also in the pack are a ''Money Detector'' booklet on how to locate
money you are wasting and three consumer guides, including questions to
ask a financial adviser.
The first question, of course, is: ''Are you independent?'' All
members of IFA Promotion are, and only they use the blue-disc symbol
with the pound sign.
Many IFAs specialise and, to ensure any particular adviser has the
skills to match your requirements, you need to establish what areas you
will need advice in -- such as investment, pensions, inheritance or
tax-planning -- and ask if he or she has those skills.
Of course, you might need to discuss your circumstances with the
adviser first to establish the kind of advice you will need, but if you
do need specialist advice he can either refer you on or call in a
specialist.
Larger firms will have specialists within the practice but you may
feel more at ease dealing with a small firm.
Though technical expertise is essential, the personal element is
important too. As well as finding someone you can talk to easily, you
want someone you fell confident is keen to handle your affairs.
A key concern you will have is the cost and this should be discussed
at the start. You get what you pay for and no financial advice is really
free: you either pay for it indirectly in commission or directly in
fees.
Commission is paid to the adviser by the company you invest in or
whose insurance policy or other financial product you buy. The amount of
the commission will vary according to the product, but the independent
adviser is duty bound to advise on the best product for you, regardless
of the commission it pays.
If the adviser works on a fee basis, the fee will be discussed with
you and agreed in advance so you will know the cost. In that case
commission which would have been payable to the adviser will be returned
to you or added to your investment.
The right adviser will be with you for years, able to counsel you at
different -- often crucial -- stages of your life.
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