Key questions to ask a Financial Adviser
There will be various stages in your life where you will have an important financial decision to make and aren’t sure which of the hundreds of different financial products on offer is the right one for you.
This is when speaking to a financial adviser would be beneficial. They will have the expertise to help you make an informed decision, whether that be choosing a mortgage or planning for your retirement.
Choosing a financial adviser is a very personal decision, it is important that you are comfortable with your chosen adviser and you feel that you can trust the advice they give you.
Here we go through 8 key questions that you should ask when you first meet with an adviser to help you decide if you would like to work with them for your financial planning:
What experience and qualifications do you have?
You are likely to be looking for a financial adviser because there is a specific area of your finances that you need guidance with such as inheritance tax or a buy to let mortgage. Therefore it is important that the adviser you select has the relevant experience and qualifications to advise you. Don’t be afraid to ask them what qualifications they have and if they have worked on any similar cases.
If they do not have the relevant qualifications or experience then you should consider finding another adviser. A larger firm, like KDW, will have a host of advisers who specialise in different areas of financial planning so if the adviser you first speak with doesn’t have the necessary qualifications/experience they should be able to recommend somebody else within the firm who can.
How is the adviser paid?
The exact fee charged will vary between different firms of adviser. However in 2013 the Retail Distribution Review (RDR) was introduced; the RDR is a set of UK regulatory changes that aim to improve the standard of financial advice and the understanding of consumers regarding the cost of investing.
As a result of the RDR, financial advisers must charge clients an upfront fee for the service they provide. In the past some advisers wouldn’t charge a fee and would instead earn a commission from the chosen investment product. The change introduced by the RDR aims to remove the risk of advisers choosing a product that provides the highest level of commission regardless if it is the most suitable product for the client.
At KDW we charge an upfront fee which is fair and reasonable for the level of advice you are receiving, your chosen product and any implementation and ongoing costs that will be incurred.
What is the company history?
It may help your decision to find out more about the company’s history and how long they have been trading for; either by asking the advisers or by visiting their website. It is down to personal preference but you may feel more comfortable receiving advice from a company that have many years of experience and have built up a reputation in your local area over a period of time.
Other factors that may affect the service you receive from your financial adviser is the structure of the company – is it a multi-national or a small local firm? Do they have a high staff turnover?
Who will be my point of contact?
Will you always hear from the same adviser or will it always be someone different? We believe that the key to successful financial planning lies in the relationship you build with your adviser, therefore it is important to find out if you will always be able to speak to the same person or if they have a dedicated support team who will also be aware of your situation, goals and product choices.
What services do you offer?
Some smaller firms of advisers may just specialise in one area of financial advice such as pensions, whilst a larger firm, like KDW, will offer all services under the one roof from investments to tax planning. While you may originally approach a financial adviser for one specific requirement such as a mortgage, in the future you may wish to speak to your adviser about another area of your finances such as retirement planning; therefore you may find it simpler to be able to keep everything within the same firm.
How do you compare to a bank?
While many banks offer financial advice they are only able to offer advice on their own products, which aren’t necessarily the best option for you. An independent adviser however is not tied to any one provider and will be able to search the whole of market to find the most suitable product.
Another common complaint with people that use banks for their advice is the difficulty in actually reaching a person to speak to, whereas a financial adviser will always be contactable and you won’t have to go through a machine to be able to speak to the necessary person.
How do I know my money is safe?
The financial services industry is highly regulated by the Financial Conduct Authority, who ensure that consumers are protected and that financial planning firms operate in an honest and transparent manner. You are able to check that a financial adviser is regulated by the FCA by viewing their register here.
Savings up to a certain level are protected by the FSCS; if your bank or building society were to go bust the FSCS would cover your savings up to £75,000.
Certain firms are able to hold the clients money and have discretionary powers to invest, which means they can choose which investments to invest your money in and when to do it. If this is something you would like your adviser to do make sure you ask them if this is within their remit.
When you meet your adviser they will be able to explain the different levels of protection and risk associated with each product choice.
What level of service can we expect?
It is worth discussing with your adviser how they will communicate with you, will they write to you, call you or email you? Will they have regular reviews with you to ensure your chosen products are still performing in line with your goals?
Why KDW?
- KDW have been providing independent financial advice in St Albans, Hertfordshire, since 1978.
- FCA registered • We have a variety of advisers who are experienced in all areas of financial planning
- Being independent financial advisers we are not tied to any products • All are fees are transparent – there are no hidden fees or costs
- We offer goal based solutions
- Driven by our client relationships
- We have access to the whole of market, sourcing the best possible solution for our clients
- Our advisers hold bi-annual reviews with clients to check the chosen products are still performing in-line with their goals
- Our areas of advice include pensions, workplace pensions, investments, mortgages, tax planning, life assurance and commercial.
We also have an in-house estate agent who can sell or let your property for a considerably lower rate than the average high street estate agent. Ultimately the decision of picking a financial planner is down to your personal preference and the level of service you require. Hopefully this list of questions will help you to make an informed decision on the right financial planner for you.
If you would like to make a free, no obligation, appointment with one of our financial advisers then please either call us on 01727 85 22 99 or mail@kdw.co.uk