3 Types of Financial Advisers – Whom will You Choose?
When you set out for starting investing your idly lying money in a financial product, you can be easily daunted because there are so many of them out there, including unit trusts, life assurance and pensions. You may even be scared to invest your hard-earned money in a wrong product. You can choose the right product only if you have the correct research and planning. But this takes a lot of time, hard work and resources which you mostly don’t have. Here a financial adviser can help you. They are the experts who study your specific requirements and help you choose the right financial product.
So far, you might have thought that hiring a financial adviser is only reserved for top hedge-funders looking for one more billion pound investment. However, it’s not the case. You may come across situations in your life like buying a home, starting a family or entering retirement when you need proper financial planning. If you don’t have time for this, consulting a financial adviser can help you clear your financial goals and priorities. They evaluate your scenarios by examining your current financial status, any loans and the type of goals you have for investing, and give you the right advice. During the consulting, they will help you set a budget, give you financial advice and help you identify products that may fulfill your needs.
Note that there are three types of financial advisers.
1. Tied Advisers
A tied adviser is the one who offers products from only a specific company, such as a bank or credit society. Working with this type of adviser is fine if you are happy to make investments in the products of only one company. However, you should keep in mind that this will limit your options of products.
2. Multi-tied Advisers
Multi-tied advisers work for a variety of products that are offered by a set of companies. Working with these advisers can give you a wider range of options than that with a tied adviser; but still you get a limited number of products, and you may not find a perfectly suitable product for your needs. Here, researching which products they have to offer helps you choose the right type of adviser.
3. Independent Financial Adviser (IFA)
This is the best type of financial advisers because since they are not tied to any particular financial company, they can offer you an unbiased advice about products which are really beneficial to you. As they are not linked to a particular company, they are free to research the market for you and find the best info. Just as they promise in their IFA marketing campaigns, they help you make the right decision.
So, are you ready to make your financial planning with the help of a financial adviser?