- No shortage of people willing to tell you what to do with your money
- one of the growth professions of the 90's and new millennium.
- Types of advisor
- Tied advisors - work for one institution - will only advise on
that institution's products.
- Tied advisors will not necessarily advise on the best deals available.
- If you use tied advisors be sure to compare quotes from 3, 4 or
however many you have time to go to.
- Independent advisors advise across the whole range of products
available. Should find the very best for your needs.
- Independent advisors are paid in 2 ways:
- Commission based - advisor earns commission from products
- Fee based - client pays advisors fee, advisor refunds any
commission to client
- Commission based costs nothing for advisors time - but they may
have ulterior motives (ie higher commissions) for recommendations.
- Important points
- Is the advisor licensed?
- Does s/he belong to the relevant professional bodies?
- Is s/he bound by any code of practice?
- Advisors can assist in investment process, but remember it's YOUR
money at stake.
- Ask your advisor difficult questions - and lots of them.
- Never abdicate your responsibility to an advisor.
- Don't invest in anything you don't understand.
On the Web:
of Financial Planning The UK professional body of Financial Planning.