In an ideal world, you meet the perfect independent financial adviser who will put you into the best pension plan, the best life insurance policy, the best mortgage, the best ISAs and unit trusts, etc. Completely impartial, he will not be swayed by the temptation of big fat commissions from insurers, pension providers and mortgage lenders. At least, that is the theory. Welcome to the real world. With several thousand IFAs to choose from, finding the right one for you could be a nightmare. These people can be useful because they take so much of the legwork out of the dreary task of getting yourself a mortgage, etc. They shop around and know about all the best deals of the moment.
First stop, ask friends if they know a good IFA. Failing that, check out the website: www.unbiased.co.uk. This will give you a lot of information about IFAs and guide you to a number of them listed in your area.
When you first meet an IFA, you want reassurance from him that he is completely independent and will give you best advice. Test his knowledge. And if you don’t like or trust the person, don’t even think about going any further. Meet several IFAs until you find one you do trust and you feel will act in your best interests over the long term. The watchword here is caution. Because pensions and life insurance, etc are all long-term commitments, do not rush decisions. Be like a reluctant virginal bride and take your time.
Be aware that an IFA must give you a menu outlining both his fee and commission-charging options and that he is obliged to offer you this ‘fees’ option. Feel free to grill him on which method of payment would be best for you. Don’t hold back. This is your money and you have to take charge. It’s no good whinging ten years after the event and wishing you hadn’t been so compliant with the IFA who roped you into the wrong mortgage or pension.