Financial Advisor - First Timer

[HopelesslyOptimistic]

I've never used a financial advisor but I'm now ready to seek that one/one to help me plan for the future. I want to discuss pensions, property investment, passive income and tax efficiencies.

What questions are a must to ask?
What should I expect to be charged per hour?
What to I need to bring to my first appointment?

Thanks 🙏

Sounds as if you need a financial planner rather than a simple advisor.

Maybe use one that uses a cash flow forecaster? It helps a lot!

I'm not a financial adviser but I am married to one and do his admin!

A lot of IFAs will do an initial meeting free of charge. Make sure you go to one that can offer full independent advice. Try and get a recommendation if possible as the ongoing relationship is important.

Ask all the questions! Make sure they are completely transparent about their charges. It's often based on the volume of investments so there's usually an initial charge to consolidate pensions or recommend investments. Then there is usually an ongoing charge for managing your investments.

Ask about access to view your investments. We have a portal that links to all providers so you can see all your investments in one place.

Remember though that investment is long term. It's often a bit of a shock to see your money go down after the initial charge has been taken out but it has to be viewed over a few years not months.

Good luck

Then there is usually an ongoing charge for managing your investments.

Look for someone who offers this as an option, not automatically bundled in. You might not want or need ongoing management once you have the plan.

Cash flow forecasters... ok I'll have a look at that & planner as suggested above.

I've educated myself recently about finance/money so now have a better understanding. Wish I'd done it sooner but now I'm ready to get some expert one/one.

Thanks Champs, lots of great advice there I'll take on board.

what makes you think you need a financial advisor?

In my experience an FA simply talks about investments generally. They have their favourite investments (sometimes because they are tied). They are also very expensive with their ongoing management fees. Depending on your pot it's probably not worth it.

I have never found one who has knowledge of tax which is the key area if you have a lot of money, property, investments etc. This is actually the hard bit!

There is so much on-line now - Motley Fool, Money to the Masses etc you can do a lot yourself.

Before engaging a financial adviser, take a look at moneyhelper.org.uk. Free impartial expert money guidance. It's not advice but a very good start. Ensure that any adviser you use is regulated by the Financial Conduct Authority.

Do you need a financial planner / adviser?

m.youtube.com/watch?v=KlDbMVP9G1w

Also avoid St James Place. There are lots of FAs who make it look as though they are independent but they are actually SJP.

Their charges are sky high, many of their investments don't perform and there's been a lot of negative press about them.

@makeanddo

have never found one who has knowledge of tax which is the key area if you have a lot of money, property, investments etc. This is actually the hard bit!

If you want broader advice such as tax, property, etc., then you need a "financial planner" and not a "financial adviser".

Google for "chartered financial planner" for the professional body website which includes a local search facility.

Property investment, tax efficiencies.
You may want a tax accountant.

Really focus on what aspects you need most help with, as setting up pension/ISA and choosing funds you can do yourself. Cashflow forecasting you could do yourself. Tax efficiency may be the main thing you need help with, so an accountant costing a few hundred a year may be viable option rather than a financial planner costing a few thousand. When nearing retirement or a major event occurs, then a financial planner may be useful in addition to the accountant.

Look at what you can do yourself and what you need help with. Then ask specifically about the things you need help with.

If you can afford it, get two separate plans from two different advisors and compare the two. You can then go back to your preferred advisor and ask some detailed and informed questions. It's worth taking the time as it might make a significant difference to your future finances. I wish I had known to do this!

That's just it, I'm now not sure having read some of your kind responses. I think an accountant could be my first option... to check that I'm being efficient. I think I may simply need reassurance that what I now know and think I need is correct. I truly wished I'd educated myself sooner. But I guess better late than never.

Nannynick - I think you could be spot on. I've reviewed my ISA & Pension ... I'm thinking of diversifying into property as a retirement option, and I'm just reading about the benefits of limited companies.

Thank you for the heads up & advice, really helpful 🙏