7 questions to ask your financial adviser

 Working with a financial adviser is useful if you want to be proactive with your financial goals and to find the one that feels right for you can be straightforward. Here is a list of 7 questions to ask your financial adviser before engaging with them.

1. Are you an Independent Financial Adviser (IFA) or restricted?

Independent advisers will consider products from all firms across the market and have to give unbiased and unrestricted advice.

2. How do you charge and how much?

Remember that fees can be negotiable so do not be afraid to ask; find a number that delights both you and the IFA. Bear in mind too that the adviser may have a minimum fee threshold and that cheapest isn’t necessarily best.

3. What is your area of specialisation?

Some advisors specialise in advice to women, the medical profession, pensions but not investments or both. Do check that the area of specialisation is a good fit for what your needs are.

4. What services do you offer?

Does it include things like mortgages and life insurance or is it only investments. Ensure that you are comfortable with the offering.

5. What are your qualifications?

Listen out for a comforting answer. Check if the IFA is chartered, experience levels and education levels – post-graduate, etc.

6. What is unique about your offering?

Look for a description of how the advisor differentiates herself, their client philosophy, how passionate they are about this and notice if it is a good fit for you.

7. What is your investment philosophy?

Be sceptical if you hear an old sales script. Do you feel comfortable with the level of clarity presented and notice your gut reactions, they say the body never lies.

These questions have been adapted from ‘The Laws of Wealth’ by Dr Daniel Crosby.

Related resources:

Find good financial advice- by Paul Lewis Money