Independent Financial Advisors - do they charge?


Question:
I need to sort my finances out. I have quite a large amount of unsecured debt but my salary has just increased and I can afford to pay off more of it now. I need some objective advice on my best strategy to clear the loans and cards effectively. I'm a chartered accountant so I don't really need basic advice, but more guidance on products etc available.

Answer:
As a chartered accountant - do you give free advice or do you consider it to be your livelihood?.

An IFA should give you a menu of charges at 1st meeting. £20-£25 an hour is unrealistically low. Thats the typical charge for an administrator with many organisations.

Expect to pay at least £50 per hour depending on the complexity of the work you want doing. Generally the adviser will agree a fee with you at the outset.

Any commissions would generally be on top of the fees - though its possible to negotiate a deal.
some just go on commission i think - they are sponsored by certain companies- have you not got anyone at work that you could ask or take a look on the web for some advice
Certified Financial Analysts work either on commission or hourly.

I think you would get better, more objective advice from a fee- based CFA. There is less chance of conflict of interest, where the advisor is selling you something that makes him/her a better commission rather than the product that best for you.

CFA's have to keep a form ADV on file. It lists possible conflicts.

A good CFA will be able to help you locate financial products that fit your needs and should have contacts to help you find them.
ask before you you make an appointment. Most do not charge, but will earn a commission fee within 2 years of when you tak eout a product they recommend.
Independent one's can charge £20/25 per hour, shop around until you find a reasonably priced one
If you are a Chartered Accountant you have sufficient intelligence and background to do your own research and come to your own conclusions.

Many IFA's are simply salesmen who have passed an 'exam' (that I bet you could pass after a few days study) and so become 'registered' to give 'financial' advise (i.e. sell you 'products' that earn them the maximum commission). You can be sure they will soon part you from your money, one way or another :-)

I suggest you visit Motley Fool or similar.
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