Finding the right financial adviser with the right level of knowledge and expertise can be crucial to increase your potential for success when investing for your future. After all, decisions about your financial future are among the most important you will ever make. It is sensible to ask a number of questions to ensure you feel confident with the investment advice you receive. So if you want to find an adviser who can talk you through everything from your “ISA allowance” to “pensions tax relief” read on to find out some of the questions you should be asking.
Before you decide on an adviser
If you are keen to make a shortlist of advisers, you can ask them a number of questions to gauge their experience and knowledge levels. You want to know that you can trust your adviser as they will be your guide for creating realistic and achievable goals, rather than pie-in-the-sky hopes and dreams. Here are some top questions to ask:
- Are you authorised by the Financial Services Authority (FSA)?
- What experience and qualifications do you have?
- What areas do you specialise in?
- Can you offer products from the whole market or just from certain providers?
- How secure is your company and does it have Professional Indemnity Insurance?
- Do you charge a fee for an initial consultation?
- How will your services be paid for; a single fee or commission from a product provider?
- Are you able to show me any references from satisfied clients?
- When you decide on an adviser
Once you have picked an adviser, you should sit down with them for an initial meeting. This will give you the chance to get acquainted and iron out any last minute concerns. These questions are likely to involve some more technical answers, so if you get confused don’t hesitate to ask for clarification. You could also bring a pad of paper and a pen to keep track of questions you want to ask or to scribble down the answers. You might want to ask the following:
What process will you use to accurately assess my financial needs?
How much control will I have over my investments once they are set up?
What are the charges for what you’re recommending and how does it compare to other similar products/providers?
What are the risks?
What would happen if I needed the money sooner than expected?
What would happen if you left your firm; would my business remain with you or the firm?
Christopher Jones is a writer about business and finance including topics on consumer finance such as ISA allowance & pensions.