Using a Financial Advisor

[willspal]

Hello.

My husband and I have an appointment with an IFA this week because we just want a general financial overhaul. He has an endowement that he is not sure what to do with, I want some life Assurance as does he and he also wants to get rid of a few life polices that he took out before he met me and had 2 children. He is paying well over �200 a month for a few polices that he feels need re-looking at, we would like to reduce this amount as money is tight at the moment but of course we still need some cover. We are happy with our mortgage so don't want to change that.

Do you think we will get honest sensible advice or are IFA's really all tied to certain societies and push products to get commission. Not that I am knocking that as they have to make a living as do we all but would like to know in advance.

Any advice would be great.

WP

[kempie]

FSA regulated Independent Financial Advisors (as the name suggests) offer advice independent of insurance companies.

Those advisors that act on behalf of institutions are named tied advisors (working for one financial institution), multi-tied advisors (paid by more than one financial institution) and whole of market advisers (working with all companies but only on a commission basis).

[khana]

As Kempie explains, they are independant and receive commission for any products sold - a cost that you pay with your premiums over time. Still they are a good way forward and hopefully can save you money, just be aware that as with a car insurance broker, they search only a limited number of insurance companies products as the range is so large it would be impossible to check every one out there.

[Fulton]

I have used an independant advisor for years, and trust the advice he has given me. He/she is working to get the best deal for you, from all the products available. Think carefully about what you want to invest in, for what reason, length of time etc, and be honest with them.

Yes, they get a commission, but you don't get owt for nowt, and the better the products they provide you perform, probably they earn more from it also, so it pays them to give good advice.

[Sparkles3]

We have always been very pleased with our financial advisor, although have sometimes found the best deals ourselves - which he has then considered alongside other options and then sorted the paperwork (at no charge) to push it all through.

As others have said, IFAs get commission and at different rates from different companies. However they are legally bound to give you the best impartial advice and they are required to inform you of the value of any commission they would get. On occasion I believe they will charge you a small fee (�500ish?) for their advice if the products that they recommend and pursue on your behalf do not pay them a commission - have to get their money somehow!!