Do I need a financial adviser in 2023?

A financial adviser is not something you absolutely need to have, but if you’re serious about improving and growing your financial position, it’s a very wise investment to make. You might think you know what’s best when it comes to your finances, and sometimes you might be right. However there are a lot of components to finance and unless you’re actually in the field, you probably don’t have the knowledge required to make the best call possible in every financial situation. That’s where financial advisers come in. We demystify the financial processes that people are intimidated by, and break them down so you can make the best possible decision for your specific financial situation.

What are the benefits of working with a Financial Adviser in 2023?

Obviously, financial advice comes at a price. But if you’re serious about strengthening your financial position, or maybe you’re striving for total financial independence, you should think about it as an investment. Yes, a financial adviser will charge a fee, but if you choose a good one they are likely to save you money or even help you to make a significant amount of money.

You can also usually trust your financial adviser to give you high quality advice, because they operate under strict regulations and you can even be entitled to compensation if you follow through on bad financial advice to your own detriment. This is a kind of security you will only get from a regulated and well-established financial adviser. You do not have this level of security with unregulated financial advice from something like a money/business ‘coach’.

It is important to note that if you opt for a money/business coach, you have no power to hold them accountable for bad financial advice that they might give you. Unlike financial advisers, money coaches are not as heavily regulated and you’re on your own if you act on bad advice. Now this is not to say that money/business coaches are bad, you just need to be very careful in deciding whether you want more of a mentor/coach or someone who can give you solid regulatory financial advice.

Which type of financial adviser is right for me?

When finding the right financial adviser for you it’s important to consider how your adviser’s position will affect the advice they are able to give you. There are financial advisers who work for firms and there are also independent financial advisers. Ideally you want an adviser that is regulated under the Financial Conduct Authority (FCA), this way you can be confident that they will be upfront with everything and you know where you stand.

Some financial advisers are restricted and some are independent. Restricted advisers are limited to giving advice on certain products, usually dictated by the firm they work for. This is not always a negative, it’s just that their advice will tend to be more focused and better suited for very specific situations. Their practices and techniques will also be limited and influenced by their firm or organisation. So if you’re looking for specialised financial advice for individuals, this might not be your best option.

An independent financial adviser is not restricted in the same way and is more concerned with giving you tailored advice. Obviously any decent adviser will tailor their advice to your specific situation, but independent financial advisers are not nearly as restricted. Therefore arguably the better choice if you’re looking for bespoke financial advice and someone to help you take control of your financial journey.

Things to keep in mind when looking for a financial adviser

One thing you should definitely keep in mind when looking for a financial adviser is how much you’re willing to spend. Fees will differ between financial advisers and also depending on the service you want from them. They will sometimes charge an hourly fee or sometimes a flat ‘commission’ style fee. Some financial advisers will charge you a one-off fee that could be thousands but this will likely include multiple services such as investment advice, lifestyle planning and more.

You might also find financial advisers offering cheaper assessments for a couple of hundred pounds that will include a more brief assessment of your financial situation. You will tend to find the charge increases or decreases depending on your specific requirements and/or situation. In other words, to give advice regarding a large amount of money will come with a larger fee than advice about a small amount of money due to the larger risk involved.

Make sure you take the time to choose the right financial adviser for you in 2023

When choosing your financial adviser this year, make sure you take your time and do your due diligence. Have some questions in mind while you research. Think about what you want from finance, be it a mortgage, navigating retirement or striving for financial independence. If you’re looking for bespoke advice that is tailored to your specific financial situation, consider hiring a regulated independent financial adviser.

Rebecca from Evolution Financial Planning is a regulated financial planner with years of experience in providing bespoke financial advice. She works through a large network called Tenet and this gives access to the whole market preposition and many different vendors. Feel confident about your finances with a trusted and experienced financial adviser.

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