How to choose (and get best use from) a financial adviser if no one to ask recommendations from?

[MonkeyMuffins]

I’m in need of a financial advisor, I’ve been reading that it’s best to go with someone personally recommended but really haven’t got anyone to ask.

Also, if they charge by the hour (which I assume they do?) how do you ensure you get the best use from an adviser? I can picture sitting there chatting about different options for this money for hours and hours! I don’t think the advise we need is hugely complex - we want to know whether we should consolidate our various small pension pots or leave them and the best way to add a lump sum that we have earmarked for pensions; plus the best way to invest a separate lump sum, some of which we need in the medium term and some of which is ‘rainy day’. Should I just Google and choose one with good reviews or is there a better way?

My DH is a financial adviser.

Firstly I’d recommend someone independent, not tied to only the products of the company they work for.

You can look locally on unbiased.com for options. Recommendations could also come from your accountant or solicitor if you have one as they often refer people they are comfortable with.

DH offers an initial hours consultation for which he doesn’t charge for both him and the client to discuss what they need and then ensure they are happy.

He’d then charge a flat fee for putting together his recommendations. This may include modelling future finances - a cash flow model to calculate how much someone needs to save for retirement etc, or maybe he simpler. He would outline any product costs and charges and future costs if required - ongoing management and face to face reviews if needed.

Hope that helps.

@MonkeyMuffins I wasn’t sure whether to consolidate a couple of pensions. I basically tracked returns of both over about 18 months which showed one was consistently performing worse. There was then a list of things to check form the one I was transferring it into such as protected ages, drawdown types I think.

that said at some point I want to use an advisor as I want to see if my very detailed spreadsheet calculations work…..

Put all your needs into Gemini - bearing in mind it gets things wrong sometimes, ask it loads of questions - ask it what questions to ask, then test the answer on here. You might get people saying it’s too complex you need an advisor but at least you’ll know you couldn’t do it the cheaper way.

Before you do anything, spend some time on the uk personal finance Reddit and money saving expert forums. If nothing else, it will make you a more educated client of any FA.

Look at the Rebel Finance School videos on YouTube/facebook. They teach you the basic skills to understand and make these decisions for free. Loads of info on where to put your SIPP’s etc.

I wouldn’t use one. Just give Gemini the info, along with files and get it to act as a financial advisor. As mentioned above. If you want to include some of the websites listed you can also tailor your request to make sure it takes on board those websites info also.

You don’t need a financial advisor unless you have very complex finances or unusual tax situations. Do the Rebel Finance School course, the videos are on You Tube and it’s free, that will teach you pretty much everything you need to know.

Skipton building society offer financial advice they are not whole of market but have a range of products they can recommend.

I don’t think this is a good idea - you will never get the best advice on products asking a tied advisor.

First thing to look into is whether there are any benefits with your pensions. If not, then it's usually a good idea to consolidate pensions into a low cost SIPP. I like Interactive Investor but there are other platforms available. You can ask AI to calculate the costs of different platforms.

Completely agree - Gemini saved me nearly £1000/year

This. And would also add Meaningful Money podcast - search the website for some relevant back podcasts to listen to or watch videos/read articles on the site.

They regularly discuss 'should I consolidate my pensions' and the answer is usually yes unless you'd be giving up certain legacy benefits - older pensions may have better terms than recent ones but there's probably no point hanging on to the minimal pension entitlement from a job you did for a few months 30 years ago.

You should also be aware of charges, the percentages look small but compound up significantly over time - a lot of the older managed pensions have higher charges than modern SIPPs where you just buy an index tracker and leave it to do it's thing.

Another thing to make sure you understand is risk and volatility and why this is relevant in terms of when you'll want to take out the money. The financial flow chart is also useful.

The UK Personal Finance Flowchart - UKPersonalFinance Wiki

For getting lump sums into pensions, you'll be tied by annual allowances which depend on how much you earn. You then need to get the money working as hard as possible and be mindful of tax in the meantime. This again will depend on what you earn, and timescales.

Pete Matthew, who does the Meaningful Money podcast, has also written a book about planning for retirement, that's worth a read - it will probably answer a lot of questions you have, and also prepare you well for what to discuss with an IFA if it turns out you could benefit from talking to one (many don't need to)

The Meaningful Money Retirement Guide: Everything You Need to Know and Do for A Secure and Happy Retirement eBook : Matthew, Pete: Amazon.co.uk: Books

Thanks all, it’s interesting that so many are recommending Gemini - and even more recommending various money websites/videos etc. I’ve previously seen so many suggestions that a financial adviser is indicated for anything ‘different’ that I assumed that was the way to go.

I’ll give it some thought anyway, I’m not sure I feel confident ‘doing it myself’ at this point; I’ve always managed our finances myself and am confident in the basics but DH and I have just received an inheritance and I’m not sure how to get the money ‘working’ for us for the best in our current circumstances- those circumstances being that we are mid-40’s hoping to retire 60ish; currently living a very comfortable life, no mortgage or other debt, have savings, have reasonable (not gold plated) pensions, very happy with our current standard of living but have just inherited £250k. Extremely privileged position to be in and I don’t want to waste it.