A financial advisor can offer you help with any financial decision you have to make including tax planning, pension plans, investments, savings, insurance and much more. But before you take the plunge, you should know a little about the financial advisor sector so you can make an informed decision.
At one time the industry was quite straightforward and there were two types of financial advisor, independent and tied. As the name suggests independent financial advisors are able to look at your situation and choose products from across the industry to suit you, whereas tied financial advisers are linked to a financial company and can only offer advice on financial products from their company.
In 2005 the industry changed and now you have to choose between four different types of financial advisor:
The amount you end up paying for the services you receive from a financial advisor will depend on what products you purchase and where you are in the country. However, if you understand these basic differences between the different types of financial advisor it will certainly help you find the right type of financial advisor to suit your needs.