It is often said that choosing the right financial advisor is one of the most important decisions you will ever make. This is because it usually coincides with a major stage in your life, such as making a house purchase, arranging a pension, or planning for your family’s future. You may also be looking at investing in a new business or expanding an existing one.
It is important to say that you should focus on advisors who are regulated by the Financial Conduct Authority (FCA) to protect yourself and your investment.
Fortunately, the FCA offers an online register that you can search to find advisors in your area.
Let’s take a look at three common reasons to use a financial advisor:
1. Up-to-date information
Whatever the decision you are facing, a quick internet search will show just how much information is out there. Unless you are someone who is used to dealing with six-figure sums, you are likely to decide to take a step back and seek professional advice. Most independent financial advisors (IFAs) will be using financial advisor software such as financial advisor software from Intelliflo, which will mean they have access to all the information you need. Do not risk your savings with a DIY plan.
2. Sound advice
Once you have chosen your FCA-registered advisor, you will be safe in the knowledge that they have achieved a qualification level and are subject to the regulations that the authority imposes. This means they will have a breadth of knowledge that covers your needs and that any advice they give must comply with the regulations that are in place. Seeking advice from someone who is not regulated by the FCA could mean that you are risking your capital and perhaps the future of your family or business.
3. Emotional investing
Trying to run your own investments can be demanding and confusing. There are many options on the market and even those that appear to be the most attractive can have their downside, such as the suspension of the flagship equity income fund run by Neil Woodford.
Finding the best deal for your investment can be complicated, which is why the best course of action is often to seek out professional advice and protect yourself as much as possible.