Not everyone is an expert in money matters or an expert in finding the right financial advisor, which can come as a tough decision. If you’re looking for some financial advice, but don’t know how to choose the right advisor, then check out our tips on how you can find the right one.
Checking for credentials and qualifications
The first thing you should do while choosing the right advisor, is check their professional credentials. A financial advisor should have well recognised standards, such as chartered financial analyst (CFA) or certified financial planner (CFP). Financial advisors should have at bare minimum level four of the qualifications and credit framework, along with a statement of professional standing. An SPS is a document that gets renewed annually, providing a code of ethics, to show they have completed 35 hours of training each year.
Having the right qualifications and credentials means that your advisor should have a certain level of education and skill. There are different websites available for anyone to check the qualifications and credentials of financial advisors.
How does the advisor get paid?
Different kinds of advisors tend to be paid differently, some salesmen can pose as advisors, especially if they are employed by one company. If someone is employed by a company they may be earning commission, which means their main business is to gain the company clients.
An independent advisor will be able to survey the whole market for you, meaning they are not just restricted or employed by one company. Independent advisors are not there to purley gain commission, they will be there to try to sell the companies products and services instead, whilst trying their best to provide you with the best products within the market.
Make sure they can give you clarity
All financial advisors should be able to explain everything you ask them, with a clear and concise explanation, that you feel you completely understand. If you feel that your advisor is struggling to give you a good standard of advice, or you feel that they cannot answer all your questions, then you should go elsewhere. You will find it difficult to build a relationship with your advisor if so, you need to feel as though you are fully satisfied with the advice you’re receiving about your finances.
Make sure your advisor can keep you on track
A financial advisor should not only listen to your needs, but should also keep you motivated and will tell you what to do. A financial advisor is there to keep you on track to meet any financial goals you may have, or to help guide you through your personal finances at all times. If you feel as though they are not helping you to keep on track, then you should consider trying another financial advisor.
Questions you should ask a financial advisor
- How much do you charge and how do you get paid?
- Are you an independent advisor or restricted?
- What qualifications and credentials do you have?
- How does your firm measure my finances?
Finding the right financial advisor can not be a simple process sometimes, you will need to put the time and effort into actively searching for someone. This will ensure that you work with someone who you can trust, that takes their time and that has your best interests at heart.
If you are on the search for the perfect financial advisor, Suttons IFA is a leading financial planning and wealth management firm based in Manchester. They are an independently owned firm specialising in the provision of face-to-face financial advice to individuals, their families, business owners and trustees across the country. They will be on hand to provide you with advice and help to reach any of your financial goals, helping you to take control of your finances better.