How to choose a financial advisor

Making the most of your finances is much easier with professional guidance. A financial advisor can provide you with a host of services and advice to help you make the most of your assets, both now and for the long term.

You can find out all about how financial advisors could help you in our expert guide, which you can download for free. First, however, it is important that you choose which financial advisor to approach.

Finding the right financial advisor may seem like a daunting task. You’re trusting them with personal information and placing your financial security in their hands.  To help, we’ve put together this short article, explaining how to find a financial advisor you can trust.

How to find a financial advisor you can trust

1. How long has the firm been running?

An experienced financial planner can advise you on all aspects of your arrangements, from mortgages and investment portfolios to retirement planning and estate management. They should also be able to set up and manage your investments and alert you to market changes and new opportunities.

In addition, they can help you to view your circumstances as an integrated plan. This is ideal when you’re planning for long term goals such as early retirement, private education for your children, or that round-the-world cruise you’ve always been promising yourself. Comprehensive services like this require experience.

Expert tip: Make sure you ask plenty of questions about how your financial planner will work for you and ensure you’re comfortable with their methods.

2. How expensive is financial advice?

How to find a financial advisor you can trust: They will be up-front about costs and clear on how you will be charged. There are a number of different methods to consider and each firm will have its own way of doing things.

• A set hourly rate – in this case you need to get an estimate of how long the work will take.
• Fixed fee – some independent financial advisors may charge this for completing a specific task or project.
• Percentage of assets – where there is a portfolio of investments, the planner may take a percentage of the total value as payment.
• Retainer – costs are based on an agreed percentage of the investments value or on a time basis for regular management.

Expert tip: When thinking about costs, always remember that good financial guidance is an investment in itself. Over time, this will prove invaluable and far less costly than seeking no advice.

3. What credentials should a financial advisor have?

You’re placing a great deal of trust in your financial planner so you need to be sure who you’re dealing with. A little knowledge of basic definitions and qualifications is helpful and most financial professionals will have this information on their websites.

• CFP – Chartered Financial Planner – highly qualified with many years of experience.
• FPFS – Fellow of the Personal Services Society – the professional body for the UK financial planning profession.
• IMC – Investment Management Certificate – held by staff in the UK’s leading investment firms, the IMC demonstrates competence for regulatory purposes.

Expert tip: If your financial advisor has any or all of these, you can be sure you’re in good hands. These are highly qualified experts with many years of experience. Ongoing training will also be integral to how they operate.

4. Request sample reports

When wondering how to find a financial advisor you can trust, it’s important to consider communication. The way in which your financial advisor communicates with you should be clear, concise, and easy to understand. Will they send regular written reports? How will they update you on changing market conditions? Which way is best for you?

Your independent financial advisor should be happy make an arrangement that’s convenient for you. Ask for a sample report to get an idea of how they present the details, just to make sure you’re both on the same page.

At Expert Wealth Management, we make it our aim to help you improve your finances in as clear and simple a way as possible. To see for yourself how we present our advice and how we can help, download our free guide, ‘8 Reasons To Use A Financial Planner‘.

5. Look around!

Don’t underestimate the importance of having a good relationship with your financial planner. They need to understand your concerns, aspirations, and lifestyle. Arrange to meet a potential new financial planner in person and if you’re not comfortable for any reason, try somewhere else.

If you’re not sure where to start looking don’t be afraid to ask friends and colleagues. A personal recommendation is always helpful and indeed reassuring, as organising your finances can be a daunting prospect for many.

Still wondering how to find a financial advisor you can trust? Let us help you to feel secure and confident with your finances. Get in touch with Expert Wealth Management today on 01993 772467 or contact us online.