Home Business Insights & Advice Things you should look for in a financial adviser

Things you should look for in a financial adviser

by Sarah Dunsby
31st May 23 8:08 am

Obtaining a financial adviser can provide a wide range of benefits for your finances, regardless of your situation, age, or experience in investing.

However, it can prove tricky to find the right financial adviser for you, especially when you’re not entirely sure of what to look for.

With this in mind, we’ve put together this list of the top things to look for when choosing a financial adviser from a modern wealth management service.

Advice tailored to your financial situation

One of the first things to look for in a financial adviser is not simply that they offer advice, but that their advice is accurately tailored to your specific financial situation.

Every investor will have their own requirements and needs when it comes to their finances, so it’s important to have an adviser that can tailor their advice based on a clear understanding of your circumstance.

Your adviser can explore various aspects of your situation with you, which can include a full analysis of your income as well as a discussion about your concerns and challenges.

This can allow them to develop the right approach to your financial journey, that best aligns with your individual circumstance and needs.

Guidance on building a financial plan

Another key thing to look for in a financial adviser is that they can offer guidance on building your financial plan.

Financial planning allows you to establish any financial goals you have for the future, and implement them into a comprehensive plan that involves steps and direction to achieve your aims.

There are many goals you might have for retirement, whether it be to have a certain amount in your pension pot when you retire, to have an early retirement, or maybe to have your assets allocated tax-efficiently when you retire.

Whatever goals you have, your adviser can continually adjust these so they align well with your current circumstance, and what you can realistically achieve when building your wealth.

Recommendations for optimising your contributions

You should also consider an adviser who can offer recommendations for optimising contributions to your pension.

Your adviser can help you effectively navigate the annual pension allowance – which is £60,000 in the current tax year 2023/2024 – to shelter as much of your savings from tax as possible.

On top of this, the recent changes in the lifetime allowance might also impact your pension. Therefore, your knowledgeable adviser can offer you guidance on how you can minimise the impact this has on your wealth.

They can show you how to contribute the right amounts at specific times, to shelter your money from tax and build your pension towards your unique goals.

The option for ongoing financial advice

Whilst financial advice is highly beneficial, you should also consider finding an expert who offers ongoing financial advice.

This is important, since you may have a solid plan to start your financial journey towards retirement, but various factors could impact how effective this plan is along the way.

For instance, this could include things like changes in income tax rules, movements in the markets, or personal factors such as your career changes or additional financial dependants.

With ongoing advice, you can continually review your plan with your adviser, and ensure you’re effectively navigating these impacts to stay on the right path towards your retirement goals at all times.

Now you’re more informed on what to look for in a financial adviser, make sure you apply these considerations when seeking a wealth management service for your retirement planning.

Please note, the value of your investments can go down as well as up.

Leave a Comment


Sign up to our daily news alerts

[ms-form id=1]