What do Independent Financial Advisors do?

Independent Financial Advisors give recommendations for pensions and other investments.

• They differ from Restricted Advisors in that they can give unbiased advice about the whole range of financial products from all the different companies available in the UK investment market.
• By contrast restricted advisers give advice on a more limited basis. They may specialise in one area, for example restricting themselves to protection or pensions. Or they may be restricted in terms of only offering advice on financial products from a limited number of companies.
• It is always best to check when you are seeking financial advice whether the advisor is restricted or independent. Looking for an independent financial advisor will give you the widest range of advice and products available to suit your requirements.

What makes an excellent IFA?

Excellent advisors will have a consistent process for giving advice including these steps:

1. Risk profiling to see your attitude to risk and capacity for loss
2. Full fact finding to understand your current financial position and future aspirations
3. Cashflow planning to ensure you never run out of money

Once they have made an assessment of your situation they will produce a recommendations report detailing suitable investments for you.

The quality of the initial advice is critical so you are on a sound footing to optimise your wealth over your lifetime. However just as important is a consistent ongoing service where your investments are reviewed, preferably every six months, and the funds you are invested in are analysed regularly.

Think of your investments like your car. Without servicing you risk something happening and creating a bigger issue. Having your pension and savings checked regularly will allow for adjustments to be made if necessary and to check if your cashflow plan is on track.

Can I manage my pension and savings myself?

Yes you can. There are some very large well known self-investment platforms available. The question you have to ask yourself is “have I the time and expertise to make the best decisions with my pension?”

How to choose the best IFA for you.

Here’s a little action plan to get you going:

1. Draw up your criteria for a good advisor. You may want to think through if you are happy to conduct meetings by Zoom as we’ve all had to do a lot of over the last couple of years. Or do you prefer the option to meet face-to-face? In the latter case location will be important.
2. Ask friends, work colleagues and family for any recommendations

Ask about the service they receive, the fees they pay. Bear in mind though you may have different requirements and a different level of investment. Some advisors will offer their service to anyone, whereas others will have a minimum investment value or may specialise in specific sorts of client eg business owners, companies etc.

It always pays to mix any recommendations you get with your own research.

1. Do an internet search for IFAs in your area. An advisor’s website will tell you much about their approach. If there’s not much information or it’s presented in a form you can’t understand that will tell you a lot about them. Are their fees transparent? Can you see the team you’ll be dealing with and do they look friendly and professional?
2. Check the credentials of the firm and individuals you’ll be seeing. Are they registered with the FCA. Do they hold the relevant qualifications and have the experience to deal with the sorts of financial matters you have in mind?

Look for feedback from clients about the firm’s service. There may be some on the firm’s website. Also look at the professional trust site Vouched For. This is a good source of reliable testimonials as it holds client reviews which cannot be altered by the advisor, in a similar fashion to Trip Advisor for travel.

Interested in finding out more?

Seeking a second opinion on your financial future costs you nothing.

Simply call our friendly team on 0121 355 4455 or drop us an email to appointments@oaklandswealth.com to arrange a confidential chat.

Oaklands Wealth Management, founded by Helen Blackburn in 2004 advises clients around the Midlands on retirement planning, pensions & investments.

Her firm holds British Standard BS 8577 for client service & investment process.

Minimum investment is £500,000 (£650,000 for pension transfers).