There are many people that use financial advisors, however, some people are put off by the fact that you have to pay them. In the past you were able to use advisors for free as they were paid in commission for the products that they advised you to take. However, this was seen as a problem because some advisors were only recommending products that they got a big commission from. This meant that they were working in their best interest rather than the best interest of their customers. Now they cannot get commission, they therefore charge for their services instead, which should improve their service and give them no reason to have bias. But you may still be asking whether a financial advisor is right for you.
Most financial advisors will be independent. Wat this means is that they do not work for a specific financial institution. Banks and building societies, for example, will have financial advisors which will help their customers choose between their accounts. However, they will only know about the products provided by their employer and so will only recommend those. With so many financial products available, it is unlikely that they will have a product that will suit you better than any other that is available There for, going to an independent advisor will mean that they will not be picking from just one place.
They may not pick from every single company through. This is because there are so many different companies, there may be some that they feel do not offer good value for money or a poor service and so decide that they would rather not recommend them. You can always ask them if there are any that they do not look at and find out why, then you can decide whether you agree with them or whether you think that you would rather see those companies included in the searches.
Knowledge and Research Skills
A financial advisor spends all of their time, when they are speaking to clients researching the different products available. They are therefore aware of all of the products that are available. Having trained in finance, they will understand all the different types of loans, savings and investments and how they differ and how they work. This means that they know a lot more than most people that are looking for a financial product. They will be able to more easily pick the most suitable item for each person than they will themselves as they will know what is available. As long as their client clearly explains their situation and what they want, they should be able to match them up with the right type of product. For example, they will be able to find out how much risk you want to take and then match you up with a suitable investment type or find out how much you can afford to borrow and repay and find the right loan for you.
Then they will keep their knowledge up to date with information about all of the current products available. New products get out on the market all of the time and it can be very difficult to keep track on this. However, it is a part of their job to do this and therefore they will have details of them. This means that if we look for the products ourselves, we are likely to miss some of them. There are so many that it is so easy to miss them even if we search online. Some providers are not well known and so may not show up in search engines or on money websites but they could possibly be the ones that will suit us the best.
As a financial advisor is aware of all possible products and matches us carefully to the one that suits our needs the best, it is likely that we will do well financially from them. They should find us loans, savings accounts, pensions and investments which offer good value for money and good returns. Which means that we should find that the financial advisor should save us a significant amount of money. As pensions, investments and loans tend to be long term, the savings that we make could really add up. They should more than cover the cost of the financial advisor and this will mean that they provide really good value for money. Obviously you will to find a financial advisor that you trust though.
Finding a good advisor
It is important that you find a financial advisor that you trust. There are many out there to choose form and you may feel rather overwhelmed in knowing which one to pick. However, it is good to start with asking friends, family and work colleagues to see whether they can recommend one. You may be surprised how many people have actually used the services of a financial advisor and so you may be able to quite quickly pick up the details of one that is recommended.
If you do not get the information that you want, then you can always do your research online. This is not so trusted as asking people that you know, but it can be a useful way to find out if you do not have someone to help you. You can narrow it down to local advisors as you will probably want to meet them face to face. However, with VOIP systems being so good, you may be able to just chat online rather than seeing them, if you are both comfortable with that.
It is worth reading online reviews about the advisors and look at their websites and find out anything else you can about them. Calling their office can be useful as it can help you get an insight as to what their other staff are like (if they have any) and how good they are at answering quaries that you might have.