When is it Time to Engage a Financial Adviser

At some point in our lives, whether it is at the start of your career, when you get married, when you want to buy a house or when you have kids, you have to start thinking whether it is worth investing in financial advice.

While everyone can benefit from working with a professional adviser, the cost can be a problem. So how do you know when it is time to talk to a financial adviser?

In a world where information is so readily available, most people will access information by reading blogs and books. But in some instances, your financial situation may have grown more complicated or you may want some personalised advice that help you achieve your specific needs.

The cost to access financial advice can vary. Some advisers charge an annual retainer, others a fixed fee for the work that needs to be done. This makes the decision of whom to engage even more difficult.

Where do I start?

The best place to start is to consider what are your immediate needs. For example, if you are looking to buy a home to live in, you may have questions about how best to save up for that. If you have just received an inheritance, you might want advice on how best to use that inheritance to better your financial position. Once you have worked out your financial goals, you are in a better position to seek advice as you are already aware and in more control of your finances than before.

Fees and ongoing services

When you meet with a financial adviser, you should always ask how they are compensated. Some advisers earn their fees from banks or investment companies, for example if you walked into a bank and met with a financial adviser, they are most likely to be paid a salary. But they may also be getting a commission from products they recommend.

Other forms of remuneration may be a fee for the work done, an annual retainer for ongoing services provided, a percentage of sums invested, etc.

However an adviser is remunerated, transparency is important.

When to seek advice?

Whilst there may be many reasons to start seeing a financial adviser, the most common reasons would be:

• You do not have time to deal with it yourself.
• You have no idea when and where to start planning your financial future and need a map
• Perhaps you like managing your money but are limited to what you already know, and can benefit from professional advice to make sure you are on the right track.

The cost of seeking advice and planning your future may be a worthwhile investment in the long run, if you have the right person on your team. There are many good advisers who can help but the best place to start with yourself.

You can find a lot of information online, including on this website. Read as much as you need so you have a general plan for your financial situation and get a second opinion from a professional to discuss further.