Our Complete Guide to Getting High Quality Financial Advice

Now, more than ever, it can be a bit daunting finding quality financial advice. People are facing the uncertainty of the virus and NOW, they have to contend with the wonderful world of Brexit!  Oh, the joy!

In this guide, I want to make the process a little less daunting by walking you through some questions you could be asking yourself when you’re looking for a financial adviser.

By the end of this guide, you should know what to look for, and what to avoid!

Straight-talking and jargon-free? 

I can’t believe how much jargon there is in the financial world.

‘Strategic asset allocation’

‘Uncrystallised funds pension lump sums’ (catchy!)

‘Capped and flexi-drawdown’

‘Escalating annuities’

‘Money purchase annual allowance’

The list goes on and it’s no wonder people feel a bit alienated by it all!

I’ll let you in on a little secret… most of this jargon is unnecessary. Even more than that, it can damage your ability to make informed decisions. 

These complex terms can almost always be boiled down into much simpler concepts… provided an adviser is willing to take some time to explain them to you.

This shows they care enough about you and your aims to take that extra time to make sure you fully understand everything without getting a headache!

You’d think this was obvious. After all, how can you follow their advice if you don’t understand it?

So simple language is good.

But complex terms can make the world of finance difficult to understand for people who don’t work in it.

So, when you’re reading a financial adviser’s website or speaking to them on the phone, how do they speak?

If they use a lot of jargon and long, complicated terms, alarm bells should be ringing.

Work instead with someone who keeps things simple and talks the same way you do. 

Up-to-date reviews?

Do they have good, up-to-date reviews from people like YOU?

A track record of proven success with similar clients says far more about an adviser than their qualifications or a flashy website.

Do they have a website page sharing all of these reviews?

As with most areas of commerce, a reputable financial adviser should have plenty of positive client reviews.  If they don’t, you might want to know why.

But more than just having glowing reviews, do they come from people who are like you?  People you can relate to?  People who have the same issues and concerns as you?

It might seem obvious, but different people need different types of financial advice and, therefore, different approaches.

You have to gauge whether this adviser is the right fit for you. 

Let’s say you’re approaching retirement age and want to build towards a dream retirement. You need to find an adviser who’s worked with other clients in your situation. That way, they’ll know their area in enough depth to give you great advice.

[As a side note, if this is you - read our helpful guide about retirement planning!] 

And another really important question: are their reviews up-to-date?

This is especially key - if their reviews are regularly updated, this shows that they’re consistently taking care of their customers and getting feedback from them. We’ll talk more about that later on...

It’s YOU or THEM! 

Is the relationship going to be about YOU (and not about them)?

Think of the last time you rang a large organisation like your mobile phone company or your TV provider and sat on hold for ages.

Frustrating wasn’t it?

You probably came away feeling like you weren’t being looked after. You probably said ‘wow, so-and-so’s customer service is really awful.’ Or maybe you used more colourful language...

The point was - you had to do the waiting and fit in with their timescales and process.

A lot of the time, if you ring up a financial advice firm for the first time, they’ll immediately try to put you through their system of working.

You might be sent some standardised forms to fill in, added to their database and have to jump through other hoops before you even get to an initial conversation.

For them, it’s about efficiency - not wasting their time and keeping their systems in order.

But it’s another one of my major bugbears!

I think it shows a lack of sensitivity right from the very start of your relationship.

The right financial adviser is one who’ll tailor their approach to you, not the other way round. They care more about getting it right than doing it their own way, even if this makes it more complicated for them… and that’s why they have a track record of happy clients!

So, when you’re speaking to your adviser for the first time, pay attention to how much of the discussion is about you. It should be most of it.

You don’t need to know how their systems work, what their history is, why they’re the best financial adviser in the world, etc. - you just need to know how they propose to solve your problems. 

And if they genuinely care about you and your aims, this will be in their DNA and you’ll feel it right from the get-go.  This is important stuff!

So have a look at their website and pay close attention to how your conversation with them flows… is it all about you?

Transparency

Are they transparent - about their fees and how they work?  

Financial advice is all about trust. You’re placing a lot of trust in your financial adviser to look after your precious money. It’s a difficult decision to make because the consequences of a wrong decision can be significant.

Transparency is a huge step in building that trust.

And there’s no reason for a financial adviser NOT to be completely transparent - about fees, about risks, about how they’ll manage your money.

I never finish an initial meeting with a new client without having the conversation about fees. I can’t tell them at the beginning of the meeting what our fees will be, but I know that, by the end of it, I’ll have enough information to give them a clear answer, there and then.

In the same way, right from the very start, a good adviser should be able to tell you the answers to your questions OR at least when you can expect those answers. 

And if they seem to be avoiding the conversation about fees, or are giving vague answers about how much it’ll cost you, watch out!

If they aren’t able to tell you clearly what they propose to do for you and what it will cost you, they’re not being transparent.   

This transparency should also extend to their website - it’s linked to what we said above with their client reviews. If they’re proud of their work, they’ll be transparent in sharing what their clients think.

It’s also linked to my first point about jargon. Confusing language is the enemy of transparency. The more you understand, the safer you feel in your choice of adviser! So if they’re not willing to explain something until it makes sense to you, they may not be the right adviser for you.

Are They Up to Date? 

Are their website, blog, social media, and newsletter all regularly updated?

You might not be too bothered about this but some people are.  I know I am.  If I come across any business that has outdated client reviews, social media, blogs, articles, etc., it concerns me.

As I said above, it’s one thing to have lots of nice reviews from clients on the website, but if they’re not regularly updated it doesn’t mean a lot.

The same goes for their social media channels, their blog, their website, and their newsletter (if they have one).

The way I see it - if they don’t have the time to update these things, what else are they not making time for?

If they do keep on top of all these things and are providing fresh content and insights into their work, this speaks volumes about their work ethic.

Good financial advice isn’t about what you know, it’s about what you do with what you know. So finding a finance adviser who’s not cutting corners on things like their website or their Facebook page is a valuable indicator of what sort of business they are!

Final question: do they care about your life goals?

I’m going to say something shocking now...

High quality financial advice isn’t about money. It’s about emotions.

Think about it - it’s not the money you care about, it’s what you can do with it.

Whether it’s buying your dream home, going on a dream holiday, or just living the lifestyle you want in retirement, the numbers are meaningless without these goals or dreams behind them.

So, when you’re speaking to a new adviser, if they’re only willing to talk about the money and don’t seem to care about you and your dreams, they’re probably not the right fit for you.

I’m not a financial adviser because I love numbers, or charts, or spreadsheets. I do it because I’m interested in people, what motivates them, and how I can help them.

The End!

I hope this guide gives you a good idea of what to look for when seeking out financial advice.

Find someone who speaks simple, jargon-free language, is transparent about their fees and processes, and takes the time to get to know YOU.

All this will be reflected in their website, their client reviews, their social media and, most importantly, how they engage with you from the get go.  You need to feel safe and confident you can trust them with your precious future...