Do you need a final advisor? If so, what for? People may be telling you that you really need a financial advisor; however, assessing what you need it for and if you can manage things yourself can be a great start before paying for a service that isn’t suited for your needs.

How do you know you need a financial advisor? Let’s have a look at what to consider before hiring anyone to take control of your finances.

What type of advice do you need?

Do you need regulated financial advice — which usually includes an investment suggestion — for a specific issue, such as developing an investment strategy, transferring a pension, or establishing a trust? Or do you require a more complete, long-term solution?

Another factor to consider is if you need to speak to someone face to face or if communications can be undertaken digitally via messages, emails, or video calls. This will allow you to broaden your search area when looking for the right financial advisor.

If you need information rather than a more hands-on approach, the services can be provided via digital communications rather than face to face.

Do you need restricted or unrestricted advice?

There are two types of advisers: independent and restricted. An independent adviser will have a higher initial fee, but they will recommend a wide range of retail investment products from across the market.

Restricted advisers can usually only recommend a restricted number of products or those from a limited number of sources, as the term implies. The majority of the larger and more well-known investment institutions provide limited assistance.

What type of regulations do they adhere to, or what certifications do they hold?

This tells of how they practice what they do and the level of regulation they work under. The Global Investment Performance Standards (GIPS®) are voluntary, ethical guidelines for investment businesses on calculating and communicating investment performance. GIPS compliance is a problem for firms across the industry, not only to achieve but also to maintain. As a financial adviser, undergoing gips consulting can help them meet these ethical guidelines and provide a higher level of assurance to their clients.

How much do they charge?

Many financial advisories will offer an initial free consultation outlining their services, how they can help you and what type of fee is involved for what you need. These can be via fixed fees for set services, hourly fees, or based on your assets. However, many experts will argue that you should try to avoid fees based on your assessment and try to opt for those who charge explicit upfront fees as their advice will typically be more impartial and better suited to your needs.

Regardless of the council you choose, you should request to see their credentials. While all regulated advisers must have a minimum level of professional qualifications, you should be aware of what qualifications an adviser possesses in addition to this. This is especially crucial if you have complex needs or want expert guidance on a topic like pension transfers, inheritance tax preparation, or long-term care.