Editor's Pick

5 Factors To Consider When Choosing A Financial Adviser

Financial advisers help clients create realistic budgets and accomplish their monetary goals. They can provide various financial planning services, such as investment management, budgeting guidance, and estate planning.

If you search “financial adviser near me” you will be able to get a comprehensive list of consultants in your region.

However, to make an informed decision and avoid dealing with those who aren’t a good fit for your objectives, you must know how to choose the best financial adviser.

1.     Decide Which Financial Services You Require

You can figure out why you need a service by asking the following questions:

Do you require life cover?
Do you require investment advice?
Are you planning for retirement?
Do you have an Inheritance Tax liability?

As advisers may specialise in different areas, your answers will help determine the kind of consultant you require. Meeting an adviser face-to-face could be a good choice if your financial position is complex. On the other hand, if your requirements are more straightforward, a Robo-adviser may be suitable.

2.     Know What The Advice Will Cost

The rules and regulations were changed in 2012 with the onset of the Retail Distribution Review. This banned commission to advisers, instead they will charge you a fee for their services. The adviser should set out their fees at the initial meeting so you understand what you will pay and when fees will become due.

3.      Check The Qualifications Of Your Potential Financial Adviser

When looking for a financial adviser, ensure they are knowledgeable, experienced, qualified and authorised by the Financial Conduct Authority to give advice. The title ‘Chartered Financial Planner’ is the gold standard of advice qualifications; this shows that your adviser has advanced qualifications, at least 5 years relevant experience and must adhere to a strict code of conduct.

4.     Independent or Restricted

Financial advisers in the UK fall into two camps, Independent or Restricted. An independent adviser has no ties to any providers nor any restrictions in the products / providers they will consider. This means they will give unbiased and unrestricted advice.

Any adviser that does not fall into the ‘Independent’ category is therefore restricted. This may mean that they only work with limited providers or a specific product type. moneysavingexpert.com advise “If you’re using an adviser, always always make sure it’s an independent financial adviser”.

5.     When To Consult?

You can ask for financial assistance anytime, but it is crucial to do so before significant life changes. Whether you are purchasing a home, beginning a new career, getting married, or nearing retirement, these events can have substantial financial implications. Therefore, preparing your finances ahead of time is essential to ensure a secure future.

Secondly, you can consult a specialist when your financial situation has changed. Perhaps your pay has increased, or you received an inheritance from a family member. Segmenting and giving money a clear direction is a good idea to avoid it being spent carelessly.


Long-term relationships are advantageous for clients and wealth management companies because it takes time for a well-coordinated plan to accomplish its objectives. Additionally, changing advisers can be a time-consuming process. Therefore, it is important to spend time initially meeting several advisers to find one that you are comfortable with, has competitive fees and offers the services you require.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

Your daily news source covering investing ideas, market stocks, business, retirement tips from Wall St. to Silicon Valley.


TheProficientInvestor.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 TheProficientInvestor. All Rights Reserved.

To Top