6 Questions You’ll Need to Ask Your Financial Adviser

KLOFinancial | 5 years ago

There are plenty of reasons to do more with your money. However, to make sure you’re using the best options available, it’s recommended that you speak to an independent financial adviser.

It can be difficult to know what to expect if you’re speaking to a financial adviser for the first time. Not every adviser offers the same approach, so to find out if they’re going to be providing the right solutions for you, you’ll need to ensure you’re asking them the right questions.

“How much do you charge?”

It goes without saying that this is probably the first question you’ll need to ask your financial adviser. To get a good picture of your overall costs, you’ll need to ask your financial adviser how much they charge, and how often they do so.

You will need to ask what’s included in the advice they’re offering to you, and whether specific financial services come at an additional cost.

“How do you earn money?”

Not only is it important that you ask your financial adviser how much they charge, but you should also find out how you’ll be charged. This will give you a more accurate picture of how your fees may play out as your wealth grows, and enable you to forecast future costs.

An independent financial adviser can charge for their services in various different ways. For example, they may get paid a percentage fee based on your investments, or they may charge you an hourly fee. Before making a decision, you must assess whether you’re happy with the costs.

“What types of clients do you specialise in?”

No two clients are the same – and neither are financial advisers. Different clients bring with them a different set of challenges. For example, your financial adviser may have dealt with a lot of older clients who have a larger amount to invest, meaning they’ll know the ins and outs of this demographic and the challenges it will bring.

Another financial adviser may have more experience in dealing with younger professionals who are looking to get started with growing their wealth.

Before you choose an independent financial adviser, you’ll need to determine whether they’re right for you. Asking them whether they have extensive experience in dealing with your situation is a great way to find out.

“What other financial services do you offer?”

Many independent financial advisers will offer a range of other services as well as financial planning and investment management. This is especially true if the adviser is part of an independent company – allowing them to pool together their knowledge to extend their service offering. Before choosing a financial adviser, you should ask whether they provide other services such as corporate benefits, life insurance advice or mortgage services.

“How often will you contact me?”

Asking your financial adviser this question will help to give you an insight into the service you’ll get. Some financial advisers will allow an open line of communication with them – where they will be on hand for a chat whenever needed. Other financial advisers may stick to monthly or quarterly updates. Depending on what’s best for you, you can then decide whether the adviser’s communication style suits your requirements.

“Are you independent?”

To get a better idea of how your financial adviser will be offering services to you, it’s important that you ask how they operate – i.e. whether they are independent or not. Fully independent financial advisers are not tied to any product providers, and are usually free to recommend financial planning solutions from the whole of the market.

If you’re looking for a more varied approach, opting for a fully independent financial adviser might be the best option for you.

KLO Financial Services

If you are looking for a financial adviser, Birmingham and Warwickshire based independent financial advisers at KLO are on hand to assist if you have any questions, no matter how big or small. If you decide that you want to discuss your finances with us in person, the first meeting is always at no cost to you and with no obligation. Talk to an independent financial adviser today and see how we can help you.