Nearly everyone at some stage in their life will need help and advice with their financial affairs. At this point we begin to start looking and can soon become overwhelmed by just how many financial advisers we find. There’s no great secret to choosing the right adviser, the key is in finding out what services the adviser offers and which services you are interested in.
Adviser background knowledge
So you know what services you’re interested in, and using the tax consultant’s guide it’s easy enough to see which financial advisers offer the services you require. However, a little background knowledge will help you in your selection.
There is a mixed bag of consultants who use the generic title ‘Financial Adviser’, they can be sub divided into two basic categories, Financial Planners and Investment Consultants. The range of services they offer can be quite different and often they make their profits in different ways, which can have an affect on the charges that you will pay for the consultant’s advice.
Investment consultants are ideally suited for pure investments; they can assist with your portfolio and advise you about any new products that come to market. This type of service could be perfect for you if you have a sum of money that you want to put onto an investment; he will manage your portfolio, buying and selling securities on your behalf while providing regular fiscal information to help with your investment decisions.
Financial planners are different in that they work directly with you to understand your current status and future financial goals. He will develop a bespoke plan that will enable you to reach those goals. A financial planner will cover all aspects of your life, pensions, investments, insurances, children’s education, health etc. he will develop a plan that moves with your life changes.
Financial Planners are the only advisers who will look at the whole picture, if you require a full assessment of you financial position and professional advice to help you to achieve your goals this is the type of consultant you require, basically all financial planners are investment consultants but not all investment consultants are financial planners.