Some tasks like credit cards and bill-cutting need to be done on your own. However, with annuities, mortgages, investments, financial planning, and tax structuring, you can consult the help of a financial expert. The best financial advisors will have extensive experience in business finance and be able to offer you helpful advice for all areas.
What Advisor should you choose?
Finance advisors can be divided into three main categories:
Independent Financial Advisors (IFA): These individuals can either sell or advise products from anyone who hires them. They work independently, and are obligated to provide the best advice possible.
Tied Advisors: This type of advisor is usually found in or nearby expensive street banks making sales door-to-door. The ‘tied’ term means that they can only advise/sell products from a single insurer or bank. In short, their job is to try to make you sign of to one of the products of their company.
Multi Tied Advisors: This advisor is relatively new, but they are becoming much more common in banks. They are allowed to advise/sell products which come from a limited set of firms. They are far better than Tied advisors because they have a measure of independence, but they are still far from an IFA.
If you want to receive professional advice, then the best financial advisors are the independent type, as they view products from the perspective of the entire market. Multi-tied and tied advisors are only able to sell with a limited range. There is a legal distinction between these advisors, so make sure to ask first. IFA’s are also much cheaper than tied advisors. Logically it should be the other way around, but tied commissions were found to be higher than IFA commissions.
Other Advisors
IFAs are not the only best financial advisors around. If you are looking for debt, mortgage, or tax advice, this requires a different set of experts.
Mortgage Brokers: Mortgage brokers are the best individuals for fixing a property problem. Their job is specialized in this area so they are well acquainted with different methods and procedures for mortgages.
Tax Accountants: These individuals are necessary if you have your own business, but have complicated tax problems. A tax accountant can be especially helpful for tax advice on inheritance.
Debt advice: People who have serious debt problems will still have to make their minimum repayments. If you find yourself unable to make these payments, then consult a debt counseling service to negotiate on your behalf.