*What is a financial consultant, and what are their tasks?
A financial consultant can help you save for your goals and help improve your circumstances. Discover more about what a financial adviser is and what they do.
There are many specialist terms to understand and many ways of saving, budgeting, and investing, so it’s hard to know how best to plan for your future.
That’s where financial advisers come in. They can help you manage your money and achieve your financial goals.
This article takes a closer look at what financial advisers are and how they can help you.
What is a financial adviser?
Financial advisers are independent specialists who are experienced and knowledgeable in managing money.
They are well-qualified and can help you optimize your pensions to improve your credit score.
A financial adviser offers you impartial advice on a range of different topics.
However, some advisers can only advise you on a select number of products and services. This is the difference between an independent financial adviser (IFA) and a restricted adviser.
While the former can recommend services and products from many providers, the latter can only offer services from a limited range.
A restricted adviser should always be able to explain why this is, so you’re always getting advice tailored to you.
Depending on the type of adviser you choose, they may offer you an advised or non-advised sale.
An advised sale is where an adviser lists a policy, explains it, and then details why it is the best option for you.
A non-advised sale is when an adviser explains a policy but leaves it up to you to decide.
What services does a financial adviser offer?
It’s difficult to know how best to plan for significant life events such as retirement and buying your first home and how these changes will impact your finances.
So, it can be a good idea to speak to an adviser if you’re looking for advice on things like:
- Annuities
- Pensions and pension transfers
- Tax and estate planning
- Mortgages
- Investing
- Saving and budgeting
However, financial advisers can do more than recommend policies and plans.
A good adviser will also help educate you about managing your money.
Managing money can be complex, but with the right adviser, you can start understanding some of your finances’ more complicated aspects.
What are financial adviser fees?
Financial advisers typically charge for their services in one of three ways: an hourly fee, a flat fee, or a commission on the assets managed.
Usually, your first meeting is free, as this is where you and your adviser will ask each other questions, and the adviser will determine how they can help.
If you decide to move forward with an adviser, this is when you agree on a price.
If an adviser charges an hourly fee, ensure you’re asking for a breakdown of all the work done and how long it took.
Advisers charging a flat fee are usually doing so to help you carry out a one-time project. This could be consolidating pensions or investing, usually not needing long-term support.
Some advisers may instead prefer a percentage-based fee, which is usually based on a percentage of the money you ask for advice on.
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Summary
- Financial advisers are specialists who are experienced and knowledgeable in managing money.
- A financial adviser can help advise on big life events such as retirement and buying your first home.
- Before engaging an adviser’s services, find out their areas of expertise and whether they align with your goals.