The cost of good advice
Paul Lewis on the best way to get help with your financial decision-making.
Managing your money can seem daunting. But getting professional advice about it can seem equally difficult. Only one in 11 adults has paid for financial advice in the past two years, according to an annual survey called The Advice Gap by advisory firm The Lang Cat. The same survey found that most people were unaware that there is also a free service available called MoneyHelper.
Sponsored by the Government and paid for by a levy on financial firms, MoneyHelper (moneyhelper.org.uk) gives impartial, accurate online advice on all financial topics, ranging from benefits to investing, and from buying a home to dealing with debt. If you want advice about pensions or debt, MoneyHelper can offer or direct you to free one-to-one consultations with an expert.
If you want paid advice from a regulated professional adviser, you should be aware that there are two types: independent and restricted. Only ever consider an independent adviser. They will find you the best deals from the whole market. Restricted advisers deal solely with a small number of providers and may well only recommend investments they control themselves. Some are more like salespeople than advisers. Always avoid those.
You can find a local adviser using an online directory. Vouchedfor. co.uk asks for a postcode and will bring up a list of nearby experts, along with key information – including whether they’re independent or restricted (I repeat: ignore the latter!) and the level of wealth or pensions you need for them to take you on. It also shows if they are chartered financial planners, which means they are the best qualified. Other directories include unbiased.co.uk (pick “browse adviser directory”) and adviserbook.co.uk (where you can specify independent and chartered).
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Many advisers will offer a free consultation, so find one who does and see how you get on. Remember to ask about costs, because few show fees on their website. Try to find one who charges flat fees rather than taking a percentage of your money, although they are rare. If you do not feel confident in them, never be embarrassed to cross them off your list. And if you become a customer, leave them should you have concerns about their advice.