We have all heard scare stories with regards to choosing an Independent Financial Advisor. Many of these anecdotes derive from years past once the whole industry had not been correctly policed. Nowadays you can find so many different ways that it is possible to choose an IFA who’s both reputable and right for you personally. Deciding on an IFA is arguably one of the important financial decisions you will ever make so taking time and energy to research and compare providers is usually to be encouraged.

There are generally regarded as three different types of financial advisor – independent financial advisers who search the entire market because of their clients, tied advisers who operate solely with respect to a particular company, for example a bank. Additionally, there are advisers who are multi-tied and who sell products provided by a fairly limited range of companies.

Benefits

The true and outstanding good thing about consulting an IFA is that they will act with respect to you the client instead of within their own interests or the ones of the organisation they’re selling financial loans for. The IFA will search the entire market and can actively seek out and provide tailored solutions that will suit you the customers needs.

So what do you need to do?

One of the first steps you will need to take when looking for an IFA would be to select a couple of providers which look likeliest to suit your needs. Speak with family, friends and colleagues and have for personal recommendations. Have Website link at internet review and comparison sites. The local press may also be a starting point.

When you have narrowed your search down to a few individuals, contact the IFAs of one’s choosing. Call them for an informal chat and to see how you feel. You have to be confident and more comfortable with whoever you choose to advise you on your finances. Remember that you’re the one in control and not the other way around!

When you are talking to the IFAs of one’s choice, ensure that they’re completely independent. Ask about qualifications – don’t be scared. Look for an adviser who has either a Diploma or Advanced Diploma in Financial Planning or who’s an avowed or chartered financial planner. Should you be in doubt and so are looking for a testimonial it isn’t unfair to ask to be put in contact with other current clients. Remember this is your hard earned money we have been talking about.

Enquire about fees. Do they charge by the hour or do they have a commission? Perhaps it is just a mixture of the two? You need your IFA to be completely transparent. If they are not then don’t get involved.

The main thing is that you your client feel comfortable based on the arrangement. Ensure that all dealings and conversations are transparent and that you understand exactly what the IFA does for you at all times. This works both ways, always be honest about your situation and you may not go wrong.