We have all heard scare stories with regards to choosing an Independent Financial Advisor. Most of these anecdotes are based on years past once the whole industry had not been correctly policed. Nowadays there are so many different ways in which it is possible to choose an IFA who's both reputable and right for you personally. Deciding on an IFA is arguably one of the important financial decisions you will ever make so taking time to research and compare providers is usually to be encouraged.

There are generally considered to be three different kinds of financial advisor - independent financial advisers who search the entire market for his or her clients, tied advisers who operate solely with respect to a particular company, for example a bank. There are also advisers that are multi-tied and who sell products provided by a fairly limited selection of companies.


Benefits

The real and outstanding good thing about consulting an IFA is that they can act with respect to you the client rather than within their own interests or the ones of the organisation they are selling financial loans for. The IFA will search the entire market and will actively seek out and offer tailored solutions which will suit you the clients needs.

So what do you need to do?

Among the first steps you will need to take when searching for an IFA is to select a handful of providers which look likeliest to meet your requirements. Speak with merchant services agent , friends and colleagues and ask for personal recommendations. Check out internet review and comparison sites. The local press may also be a starting point.

So when you have narrowed your search down to a few individuals, contact the IFAs of your choosing. Call them for a casual chat and to see how you feel. You have to be confident and comfortable with whoever you choose to advise you on your finances. Remember that you're the one in charge and not the other way around!

When you are speaking with the IFAs of your choice, ensure that they are completely independent. Enquire about qualifications - don't be scared. Look for an adviser who has either a Diploma or Advanced Diploma in Financial Planning or who's an avowed or chartered financial planner. In case you are in doubt and are searching for a testimonial it isn't unfair to ask to be placed in touch with other current clients. Remember this is your hard earned money we are talking about.

Enquire about fees. Do they charge per hour or do they take a commission? Perhaps this can be a mixture of both? You need your IFA to be completely transparent. If they are not then do not get involved.

The main thing is that you the client feel comfortable with regards to the arrangement. Make sure that all dealings and conversations are transparent and that you understand exactly what the IFA is doing for you at all times. This works both ways, continually be honest about your position and you will not go wrong.