Do you want your money to work for you? Are you looking for a way to maximize the earning capacity of your money? Do you want to set aside money for your retirement? Do you want to make sure that your children can go to a reputable school? Or are you looking at a property but you are not quite sure about acquiring it? Whatever stage of life you might be in, you would need a financial advice from an expert to make sure you are on the right path to financial success. These experts dedicate their lives to giving you sound financial advice so you achieve a certain goal.
Independent financial advisors or IFAs are individuals who have high degree of expertise and experience in the financial market and dealing with different financial products. They have knowledge in different types of investments, mortgages and insurance, they usually work independently instead of working for a certain firm or organisation. Because of these experiences, they can offer you options that are tailor fitted to your needs, financial capacity and life goal.
Independent financial advisors are being regulated by the Financial Services authority (FSA) and make sure they meet the strict qualification guidelines and that they remain competent in their field. Starting 2012, independent advisors in the UK are not anymore allowed to get commissions for the investments or insurance that they are able to sell. Instead, they charge a client an upfront service fee. This type of charging of fees started in 31 December 2012. The purpose of this change is to make sure that the financial advice given to you is not influence by the investment that you make and also to make the financial advisors’ fee clearer.
Independent advisors must be able to offer you all available options for an investment you are looking at and from all providers present. They then should make a fair and comprehensive analysis of the products that are applicable then make a suggestion based on your circumstances. An IFA should be free from any influence that could limit them from giving you the best product in the market. Investment products include stock market based investments, life policies, pensions and annuities. Market based investments are the type of investments where the return on your investment is not guaranteed and subject to market volatility. If you want a general advise then independent financial advisors can help you because they can offer you a range of product that are available for you.
If you are looking for an advisor, make sure you ask if they are independent or restricted because this difference will spell out the difference of the suggestions that they can give you. Independent financial advisors can give you a wider scope of investments as well as range of providers across United Kingdom while a restricted advisor may have a narrower view since they limited to a single provider.
Before you start with an adviser, make sure to ask for their fee and how they would prefer to get paid. Some charge an upfront fee while others may charge on the sum of your investment or partial payments. Be sure to look around and ask around and don’t be afraid to negotiate.