Stupid question but can someone tell me what a financial advisor does.

[onedayatatime73]

I need some help to sort out some financial issues. Do I just talk through with my bank or is an independent advisor the way to go. If so - how do you find one with a good reputation?

And (sorry stupid question) do you have to pay them? Or do they get commission if you take out something with them?

I’ve never used one before so don’t know where to start!

It depends on what help you need. If it's with accounts with one particular bank they can arrange for you to speak to one of their financial,advisors but they will probably only look at schemes that might help you with their bank. If you have queries and need help,with different things you are better off finding an independent financial advisor, they must be regulated and registered with the independent financial advisor board. Independent advisors should look at your questions, look at what money you have, the accounts, mortgage, debts, salary etc. And offer you independent unbiased advice. Is it complicated or something that can be easily sorted.

What sort of financial issues are they? If it is debt or credit issues then your bank or a debt counsellor will be more appropriate. If you are after general financial planning which might involve savings, pensions, investments, life insurance or mortgages then a financial adviser should be helpful. Most will have an initial chat with you at their own cost, to establish whether or not they can actually help you and that may be enough to steer you in the right direction.

If you choose to engage with the financial planning process properly then expect to pay a fee to cover the work involved in analysing your existing circumstances and producing tailored advice. How it gets paid will depend on whether you choose to accept their recommendations, which may include buying an appropriate product. Commission is only payable to advisers for insurance products nowadays. Anything else would be charged for by way of a fee, which in many cases can be deducted directly from the pension or investment pot rather than being paid by you as a separate item. For pensions it's more tax efficient to do it that way.