Why you should look for an Independent financial advisor

Financial advice is plentiful but finding a good, independent financial adviser is a more difficult task. Not all of those who offer financial advice are independent, and even those who are often appear to be more interested in selling products than giving all-round financial advice.
So how do you find a good one? Most banks and building societies are happy to provide advice but they are tied agents, so they can only sell you the products of one company.

Tied Agents can advise only on the products of one provider.

Many people buy financial products through multi-tied agents or single tied, such as the sales staff who work at their bank or building society. When they want a pension or investment product, they often find it easier just to nip into their bank and accept what is sold through that organisation’s relationship with one or a few financial product providers.

The person providing you with product information are acting on behalf of the company they are employed by or have a tied relationship with. Many people buy products this way, usually because they feel more comfortable buying from a big-name organisation and assuming, sometimes incorrectly, that they are bound to get a good deal. What they are actually getting is limited information from a small selection of products.

So how do you find a good INDEPENDENT FINANCIAL ADVISOR?

If you choose to seek independent financial advice, don’t just go to the first Financial advisor you stumble across in a telephone directory. It is crucial to take more control of the process right from the start, to be sure you end up with the right independent financial advisor.

Here a list what you should do:

1. List and prioritize your financial needs and goals – retirement, college planning, investing.

2. Seek Referrals: Referrals from family, friends...

3. Set Up an interview: Once you have about 2 financial advisors from your selection, set up an interview: keep in mind your financial needs and goals.

4. Request a ADV Form: It means the advisor should have a Certificate of an Independent Financial Advisor (CFA or CFP).

5. Select the right Advisor for you and your family: Remember this person will be with you and will deal with your family in case you pass away. You should be confortable talking about your financial issues and, trust him/her.

Another issues you should consider:

Areas of Expertise: Some advisers focus on particular product areas, so take care to choose the right one for your specific needs. Some solicitors offer independent financial advice, as do stockbrokers and accountants, but you should realise that accountants, for instance, will probably be strongest on tax issues. If you know what sort of advice you require, then select an adviser who specialises in this area. If you want advice across a range of products, then select one who has strengths across the board.

Qualifications: You can select an Independent Financial Advisor based on their advanced qualifications across a range of products or across a particular product area.

You want an advisor that understands your goals, can recommend securities to fit your needs, that will help you allocate your assets, who possesses the proper credentials, and above all, someone in whom you can place your confidence.