Good financial advice is invaluable and can make a real difference to your retirement. There are different sources of financial advice available – some of which you may have to pay for, either by fee or commission or by a combination of the two.
There is also a large amount of free financial information available, mainly these days through websites. This infomation is useful, and can often be unbiased, but it is not personal to you.
If you want paid-for professional advice, you have a choice of:
- advice which is tailored to you and not linked to a particular product or service, or
- advice which is tailored to you but which would recommend a particular product or service from one or a number of providers.
Financial advice tailored to you - whole of marketProfessional financial advisers who can offer advice from the whole market because they are not linked to a particular product or service, are sometimes called independent financial advisers (or IFAs).
This type of financial adviser can be either remunerated by the fees they charge – a little like an accountant - or by the commission they make on the sale of any products and services to you.
They assess your circumstances and make recommendations on a range of financial products and services. They are authorised and regulated by the Financial Services Authority (FSA). As qualified financial experts they can help you:
- understand your situation - through an assessment known as a fact find
- assess how you feel about risk – and how much risk you want to take with your money
- explain to you the options available for making the most of your money
- explain any areas you aren't sure about
- compare solutions from a range of different providers that cover the whole market for a particular product or service.
If you don’t currently have a financial adviser, and want to find one local to you, go to Unbiased.co.uk and select ‘find an IFA’. Then simply type in your postcode and the areas you are interested in for advice.
Financial advice tailored to you - tied to one or a number of providers
Banks, building societies and some life insurance companies can have professional financial advisers who may offer you financial advice. These advisers are authorised and regulated by the Financial Services Authority (FSA) in the same way as independent financial advisers, but they are tied to recommending the products or services of the company or group of companies they work for or with, not the whole market.
Check it's regulated Whenever you take financial advice, it is important to check that the FSA regulates the firm you are dealing with so that you have access to complaints and compensation schemes should you need them. You can check the FSA register at www.fsa.gov.uk or by calling 0845 6061234.
Free financial information There are numerous websites now dedicated to helping people with their finances. They are very good at helping you understand what different products are for and how they work, but they won't necessarily offer you advice, such as:
Useful links DirectGov - the UK government's website