We control the money that we spend in a shop, or on our bills, receive from work and pay into our savings, but when it comes to things that are bigger than us, we can lack the expertise to make the right decisions.
Financial advice is the next step for many individuals who are considering:
- Creating an independent pension
- Establishing a new business
- Starting a family
- Saving for or securing a mortgage
- Investing in stocks and shares
- Planning for retirement
For many, a quick search online will often direct you in the way of an Independent Financial Adviser (IFA). A few more clicks and you will see a number of points about the danger of IFAs and what their motives are. For those IFAs based in the UK, however, these can be considered myths. To bust those myths so that you can make the best choice for your future, check out the big four below.
Four myths about Independent Financial Advisers (IFAs) in the UK:
Independent Financial Advisers will take a chunk of commission
When a financial expert works with you on your investment, they will be trying to get the best results. There may be horror stories across the world about IFAs who have vested interests in other companies, but the UK has made their best attempts to nullify this. When you choose an IFA from the UK you can be certain that they have the qualifications required to offer you finance advice.
They always work in tandem with a larger financial company
The way an Independent Financial Adviser earns their money is by getting their clients deals that work for them, their salary and their requirements. In the UK, you are required to state whether you are an independent financial adviser or a restricted one. A restricted financial adviser will be rooted to a specific area of financial advice – such as a mortgage adviser or pensions adviser.
They are all able to help you with every single financial decision you want to make
Choosing an Independent Financial Adviser can seem like a difficult decision, but it’s all about knowing where to look. As explained above, there are restricted IFAs who are only allowed to practice their financial advice in a specific area or products or providers. Not every IFA is suitable for you and your situation, so understand that not every IFA will have the ability to get you the best deal unless your situation is in their area of expertise.
You cannot make a complaint about the work they perform
Fortunately, in the UK this isn’t true. Since the reforms in 2012 relating to stating whether you are an independent or restricted FA, there has been a greater onus placed on clients being able to ensure a great service. This is imposed further by each client’s ability to complain to the Financial Ombudsman Service who can perform an independent investigation into the service and the IFA.
To bust the myths of IFAs in the UK further, it’s important that you find people who care and want the best for your money. You will discover them at MacFarlaine & Brooks. Speak to us today for an initial free consultation.