At one point in life, you might need financial advice so you do not end up with an unsuitable product. Getting a financial advisor can be intimidating, but it is worthwhile if you need a piece of advice on the following:

• Pension
• Investment
• Debt management
• Mortgages
• Long-term planning

A financial advisor can help you find a product tailored to your financial circumstances. They can even personally help you plan around your money. While various financial advisors are out there, you may be discombobulated to find the one that best suits your needs.

A lot of factors like service fees, experience, the realm they deal with, and your financial goals play a paramount role in picking a financial advisor. A few people seek professional advice because it could be expensive. But it can prevent you from making mistakes with your money.

What are the types of financial advisors?

You must need to find out the specialised area of your financial advisor. A financial planner specialising in building retirement funds cannot help you with mortgages or equity releases.

It is crucial to research to ensure they have the right qualifications. There are two types of financial planners:

• The whole of market planners

The whole of market financial advisors are those who have knowledge of all financial products. They will likely give you suggestions on retirement, investment, mortgages, debt management, and whatever aspect you need advice for.

Such planners are called independent financial advisors. Their advice will not be biased at all, including a comprehensive analysis of the whole market.

• Restricted advisors

A restricted advisor is one who can advise you on a particular area, such as a pension, debt management or a mortgage. They cannot be said to independent advisors. However, there are some advisors who will be able to recommend products from all of the providers.

Restricted advisors are called “tied” when they can provide you with a product only from a limited number of providers. At the time of using a restricted planner, you should know if they are offering a product from the whole of the market or just from a few providers.

Knowing what exactly they are offering to you will help you better plan around your money. You will not rue the day down the line.

What to look out for while choosing a financial advisor

Here is how you can choose the right financial planner:

• Find out what you need

There are so many aspects of finances, and you may have to get control of all of them. It is likely that you want to fix so many financial problems. But you still need to decide on your priorities. You may want to get rid of debt and invest money to build wealth as well.

Experts say “sometimes, it is impossible to deal with all areas of your finances simultaneously and therefore you should figure out which one you want to deal with first.”

“Knowing what you want will help you look for the right financial advisor.”

However, some advisors will provide you with a whole package. You can compare the benefits and fees and then make a decision. The whole package could be expensive. In case of lack of funds, you can take out loans for bad credit with no guarantor in the UK.

• Check their qualifications

A financial advisor needs to have the right qualifications. It is worth checking that they have the licence and qualification to give you a piece of advice on the area you are seeking.

Do not fight shy of asking for the details of their qualifications. You should meet them in person and check it even though their website has disclosed their education. You may need advice related to quick business loans. Ensure your financial planner has the experience and qualifications to help you with business debt management.

• Are they authorised?

The FCA must authorise the financial advisor you are contacting. “You can easily get this information by visiting the website of the FCA.” You should not believe an advisor who is not registered with the FCA because if something goes wrong, the authority cannot help you.

It is worth keeping in your mind that a financial advisor can just give you a piece of advice. But the final decision is in your hand. Analyse carefully if it will work in favour of your budget.

• Haggle for fees

It is not surprising at all that financial advice is expensive to seek. Each advisor has their own way of charging fees. You should get all details about it before you clinch a deal. Ask them to break down the structure, so you know what you are paying for.

Do not fight shy of negotiating it. Haggling will help you get a package at a lower price.

What if it goes down the pan?

You will never want your money going down the gurgler. But sometimes, things do not work the way you expected. FCA regulates financial advisors, so you have the right to approach them to address your problems.

You can file a complaint to Financial Ombudsman Service if you think:

• You have been sold an unsuitable product
• You have been wrongly advised

The concerned authority will act upon your complaint and may ask the advisor to compensate you.

However, no compensation is given for falling investments unless it is the result of poor advice.

The final word

Finding the best financial advisor in the UK is not that easy. You will have to do proper research in terms of their qualification, experience, specialisation, etc. Further, you must know which type of planner you want to approach.

Find out why you need advice and whether the FCA regulates the financial advisor. Negotiate for fees so you can save some of your money. Know in advance whom you turn to in case of things go wrong.

It may take a bit longer time to pick the best advisor, but it is not impossible.