Finding a good Independent Financial Adviser (IFA) can prove to be a complex task. The difference between an IFA and the advisor you may find at a bank, are that IFA’s are usually not tied to a specific set of products. However, there are still some negative connotations associated with the IFAs. For example, some may feel that IFAs may try to sell higher commissioned products to clients. In order to help find yourself a good IFA, Investoo.co.uk provides the following tips:
Understand the options for IFA charges
Some IFAs offer the chance to pay on a fee only basis as opposed to a commission basis. Therefore, this can make things clearer and less pressurised. However, this luxury may come with a larger ‘price tag’.
Look in the right places
The first point of call to find a reliable IFA is through the recommendations of your friends and family. If you feel you may have found a suitable IFA, then always be sure to check that they are authorised through the FSA (online or by phone). Likewise, there are a number of websites that attempt to help you identify IFAs within your region, for example ‘unbiased’.
Devise a shortlist
Just as any choice you have in life, it makes sense to have options. Therefore, you should try to provide a short list of IFAs before committing to one. Some IFAs even allow you to have free initial consultation. If such a consultation is possible, don’t be afraid to ask what you like as this will also provide insight as to how well your IFA may be able to work with your requirements in the future.
Making a choice
After you have decided to opt for a specific IFA, the IFA will contact you to require specific information regarding your financial situation. This should cover areas such as your savings, debts, income and mortgage. From there on, they will look to work with you in order to develop an investment portfolio based on your objectives as well as attitude to risk.