Top questions to ask an adviser

26th March 2022

Trust, honesty, compatibility… Your relationship with your financial adviser will see you through some of life’s most significant ups and downs. Here’s how to make sure you find the right match.

Choosing an adviser is one of the most important financial decisions you’ll ever make. The benefits of advice can be enormous, but to reap the rewards you need to pick an adviser that’s right for you. A great adviser will help you achieve your financial goal, whether that’s buying your dream home, supporting your family, retiring early or leaving a legacy. Advice can also give you peace of mind that your financial affairs are being taken care of.

It’s critical that you do your research before choosing. You want an independent expert who can help in your specific circumstances, but also someone who speaks your language. Here are our top eight things to ask any potential adviser to make sure they’re a great fit.

What should I expect from our first meeting? Most advisers offer the first consultation free of charge. This is great news, as it gives you the chance to ask a lot of questions and see whether you think the adviser is right for you. Come prepared to discuss your financial goals, and the adviser will outline how they can help. Go armed with queries (the seven below are good to start with) to get the most out of the meeting. Take a trusted friend or family member if you think it will be useful.

How would you describe your relationship with clients? VouchedFor analysed more than 250,000 reviews and found that the happiest clients think of their adviser as a trusted friend. To get the best possible advice, you’ll need to discuss your personal circumstances, goals and financial situation. Factors such as health issues or relationship difficulties can change the best course of action. Use initial meetings to make sure that the adviser you pick is someone you’d feel comfortable talking to candidly.

How do you communicate with your clients? Communication is key to building a relationship of trust and we all have preferred ways of working. Some people hate answering the phone while others prefer talking via lengthy email exchanges so that all the detail is documented. The pandemic has led to higher use of video call platforms, but some people prefer in-person meetings. Ask your potential adviser how they prefer to work and what level of communication you can expect.

How will you track and report on progress? One of the many benefits of financial advice is peace of mind. VouchedFor found clients who feel they can quickly contact their adviser if they have a question are happier than those who feel they must wait until the next meeting. A good adviser will take the time to really understand your goals and explain how they can help you achieve them. Ask how they will update you on progress and how often you can expect reports.

How much do you charge? Fees are an important consideration when it comes to choosing an advisory firm. Advisers need to tell you how much they charge, even if it may not be possible to give an exact figure. Some firms charge a flat fee, but many use more complex structures. For instance, some charge a percentage of the value of your pension pot. Compare different fee structures and levels to find what works for you.

What services do you provide, and do you have experience of situations like mine? Some advisers have specific clients they will work with, while others specialise in certain financial products. For instance, some advisers prefer to only engage clients above a certain level of wealth. This works both ways, of course. If you have £20,000 in savings but an adviser generally deals with people who have over £1 million in assets, you’ll probably prefer someone with more experience of circumstances like yours. Many advisers offer help with a range of issues including retirement planning, investments, wills and inheritance. But you might want a specialist for your situation. For instance, if a home is the priority, a mortgage adviser might be best for you.

How will you make me feel comfortable that I’m taking the right level of investment risk? If investments or pensions are on the agenda, you’ll want to take the appropriate level of risk. Generally, the younger you are, the more risk you’ll accept, as you can ride out market volatility and make your money grow over time. If you’re about to buy an annuity, you’ll want your investments to be stable so you have more certainty over what you can afford. Ask your adviser how they will help you find the right risk level and see how good they are at explaining investment strategies. Make sure they’re clear and concise, and that they explain things in sufficient detail for your needs.

Why do you think you will be a good adviser for me? Think about how the conversation has made you feel and how well you get on with them. Ask them why they think they are the right person to help you meet your goals. Trust is paramount, so if you don’t think the chemistry is right, look for a different adviser.

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