Your prospects of financial excellence lie in the decisions you make. While getting a good advisor may be a daunting task, it is worth the effort. An advisor can help you save money, make the right investment decisions and eliminate a lot of worries.
The key to landing a good advisor is figuring out the type of guidance you are seeking. You could be seeking financial advice on retirement investing, ways to get into forex and stock trading or how to pick the right life insurance coverage or mortgage. Each of these financial decisions requires a different kind of advisor. There are also several types of expert suggestions for each of the above areas. Additionally, it is good to know who to seek advice from and when the information is required.
How Do You Find a Financial Advisor?
The easiest way to land a financial advisor is through personal recommendations from friends and family members. See who advised them on similar issues and gauge the results. The unfortunate part is that you might not get the right fit from recommendations. There are also pension schemes and unions that have contracted provisional advisors to assist their members. This is a good start if your group has such an arrangement. You can then look at professional bodies that offer advice on particular areas.
Types of Advisors
Financial advisors are not always called advisors. They come with other titles such as pension planners, mortgage specialist, financial planners or investment advisors. You will also find that some are called brokers or agents in particular products such as mortgages, car and home insurance or shares. Regardless of the name they use, all financial advisors in the UK are under the oversight of the Financial Conduct Authority (FCA).
The law requires advisors dealing in pensions, investments, retirement incomes and types of financial planning to hold certain qualifications. It is different from the past where most of them earned commissions from the sale of their products. Advisors such as Crowood Financial Services, may also be offering mortgage or insurance advice. They are called restricted or independent advisors. They offer advice on various products across the markets and are not limited to providers or type of products
Mortgages and Equity Advisors
There are specific mortgage qualifications for these types of advisors. Equity release products advisors must have a specialist qualification in the area. They earn commissions from the products sold through their recommendation. A few are tied to a few or one mortgage provider. You can also find an independent one who offers a broader choice of alternatives in the market.
General Insurance Products Advisors
The general insurance products may include car, travel and home cover. These advisors are also called insurance brokers and are paid commissions from the products they sell. Such brokers can help in filing claims and when shopping around for the right mortgage deals at the end of the year. The reason is that they know the best insurance that covers your needs. Some of the best brokers are those who work with several providers as they give clients an array of choices to pick from.