How to choose a good financial adviser?

Financial planning services are for more than just high-net-worth individuals.

Working with a financial professional can benefit just about anyone who wants to better manage their money and reach certain objectives.

That’s why knowing how to choose the right financial adviser is essential. The following steps will help you find the right financial adviser based on your needs.

Not sure exactly what you need? Read our guide about the difference between financial advice and financial planning.

Know what area you want help with

Before you set out to find a financial adviser, you first need to identify what areas of your financial life you need help with.

Are you looking for tax planning advice or to build your investment portfolio? It could be advice on retirement planning you need. Maybe it’s a combination of things. These are the key questions you need to ask yourself.

Knowing what kind of help you need will make the next step much easier.

Find out what services they offer

Different advisers may offer different services, but some of the common ones include the following:

• Investment advice
• Tax planning
• Retirement planning
• Estate planning
• Advice on insurance products

Once you know what areas you want to work on with an adviser, you can find one that offers the services you need.

Fee structures

Financial advisers typically charge using a fee-based structure or a commission model.

Fees simply mean you are charged a flat fee. This may be an hourly rate or a one-off charge.

Most advisers charge a commission based on the percentage of assets you have invested, otherwise known as assets under management (AUM).

Some advisers or financial planners may charge using a combination of these methods.

Either way, a financial adviser should also be transparent about their fee structure. That way, you know how much their services will cost from the outset, so there are no hidden charges along the way.

To understand more, read our guide to how much financial advice costs.

Building a relationship

It’s essential that you can build a personal relationship with your financial adviser. After all, you are trusting this person to help you make important financial life decisions.

It is usually a good idea to have an introductory meeting to ask questions and get to know the adviser. At Holborn Assets, you can book a no-obligation initial meeting with one of our advisers by using our contact form.

Do your research

You need to ensure the person you choose to work with is a reputable professional with the experience to handle your financial situation.

Most financial advisers have a fiduciary duty. This means they are required to act in the client’s best interest, not their own.

Online review websites such as Trustpilot allow you to view the experiences of others. Aside from reputation and experience, you must also ensure they are qualified to the required standards.

Regardless of the advice offered, all financial planners/advisers must hold a minimum qualification equivalent to the first year of an undergraduate degree.

At Holborn Assets, our advisers hold a minimum Level-4 certification from the CISI or equivalent.