How to choose the best financial adviser for your needs
Financial adviser Jono Randell-Nash explains how to navigate this important decision
There’s no denying that picking a financial adviser is a pretty big deal. Ideally, you’d choose an adviser once and you stay with them for life.
So, how do you make sure that your first choice of financial adviser is the right one for you?
The best advisers understand their clients intimately, they’re not just thinking about the numbers, they also understand their fears and ambitions, ensuring clients are provided with a truly bespoke advice.
Here are my SIX top tips on what you should consider when choosing a financial adviser:
1 | Adviser fee models
The way advisers are compensated varies, either by an hourly rate, fixed fees or by a percentage of the assets they are managing.
Always check if there are exit fees, and whether you are tied in or can walk away with no penalties, with just a month’s notice.
Make sure you are clear on how the adviser is compensated and if you comfortable with how that adviser works.
If you only want a one-off piece of inheritance tax advice an hourly rate could be best, or if you want ongoing help a percentage of your assets means you have access to your adviser throughout the year, a bit like a retainer which is how we work at MWA.
2 | Restricted or independent
Restricted advisers can either only provide you with advice on one area e.g. pensions, or only have a certain number of products and aren’t free to choose from the whole marketplace.
Independent, unrestricted advisers don’t have their own products to sell you, they select from the whole marketplace. There’s no financial incentive, or requirement to use certain products, so there’s no conflict of interest over which product they recommend.
No area of financial planning exists in a vacuum they all interrelate, and the best holistic advice can factor in inheritance tax planning into the pension planning. This provides huge opportunities for a better plan.
If you don't need a full, wide-ranging review of all your financial options, restricted advice could be a simpler, more streamlined way to address specific financial needs. Restricted advice firms have fewer options to consider, which can be quicker and potentially cheaper as it simplifies their research and reduces their time spent providing advice.
The main downside is you don’t know if there are other options out there that would be more suitable, but that firm cannot recommend. For that reason, once they understand the differences, people typically choose independent advice.
3 | How old is the adviser?
Some people like advisers who are the same age as them, because they’ll have similar life stories and experiences.
Others prefer an adviser they know is not looking to retire soon, forcing them to start over building a new relationship.
It’s personal choice, but the age of your adviser should be something you actively think about, as should the set-up within the firm. Do they have succession planning in place?
For example, within MWA there are advisers at all stages, so there is succession planning in place. That isn’t always the case if you engage an individual who isn’t part of an organisation, but sometimes they have arrangements in place. If in doubt, ask.
4 | Do you like them?
You may not have thought about this in detail, but you are going to have to share personal information with your adviser, to enable them to give you great advice.
You’re going to speak to them at least once a year, although ideally more often. So, do you like them? Are they easy to talk about your finances?
In an ideal world, you should be looking forward to your catchups!
5 | Any specialist advice required?
There are many different types of clients, so advisers often specialise in different areas.
For example, are you a lawyer, self-employed, retired, about to retire or looking into estate planning and later-life planning.
Having an adviser who regularly deals with clients in a similar scenario should benefit you.
6 | Do they offer cashflow modelling?
Historically financial advisers haven’t always offered cashflow modelling. This is now recommended by the FCA, but is yet not legally required.
This is a piece of software that shows your current assets, income, liabilities but also projects your current assets and future contributions to show you where you’re likely to end up. Financial forecasting is common for businesses, but less so for individuals (although that is changing).
In my opinion, enabling you to see your financial future and to the financial impact of your decisions is absolutely vital.
Ultimately, think - if my financial circumstances changed, is this adviser one of the first people I’d want to call?
You can arrange a free initial consultation with Jono here:
Jono Randell-Nash is a financial adviser based in Devon.
Jono joined MWA in 2022. Prior to becoming a financial adviser, he was a solicitor for ten years. Jono specialises in providing advice to legal professionals, particularly barristers and self-employed consultants/sole directors - utilising his personal experience of the legal industry. In his own time, when not with his three sons, Jono can be found playing tennis, watching rugby or F1, cycling, or reading.
