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Financial Advisor: When to Consult and How Much It Will Cost

When it comes to taking financial advice, many think that it revolves around business. Small, medium and large enterprises mainly consult a financial advisor to buy and invest in a commercial product. Gone are the days when their role was limited to entrepreneurs. They are helping millions of people with managing their finances. Money is one of the significant concerns in the world. Millions of people live under debt due to the soaring cost of living, which is why they are turning to financial advisors for help.

Whether you want to invest or you want to get out of debt, financial counselors will ask detailed questions about your financial circumstances, your goals. You must tell them everything honestly because they will give suggestions according to our financial suitability.

There are various types of financial advisors offering a wide range of services from general financial planning to investment decisions. You know that what a financial counsellor can do for you, but how will you decide the right time to hire a financial advisor?

When will you need an advisor?

Finances often seem to be disturbed. When an emergency pops up or you lose a job, you fall off the financial track for a short time. However, such situations are ideal for rushing a financial guide. Instead, you will take out quick loans on the same day to fund your needs. Here are the most difficult situations when you should seek help from an advisor.

  • Your finances are complicated. You have been struggling to manage debt and regular expenses.
  • You have no idea what you are doing and what exactly you need to do to nip it in the bud.
  • A financial product seems to be complicated. You are not sure about the research you are doing.
  • You have given up.

If you are looking for investment and overall financial planning, a financial planner will be a person to talk to. If you are seeking help for debt management or budgeting, a financial counsellor will help you. You will have to determine the scope of your need so that you contact the right person. Consulting financial guide comes with a lot of benefits, which include:

  • You will create a balance between saving and expenditure.
  • You will be up on smart ways to build an emergency cushion.
  • With proper investment opportunities, you can make more money.
  • Your approach will no longer be tunnel vision because a third party will give you an overall idea about your circumstances.

How much does consulting an advisor cost you?

The cost of consulting a financial guide depends on how you pay. Some charge on an hourly basis and some charge percentage fees or fixed fees.

The percentage fee is the most common method. This method is commonly famous for invested assets. You will pay a percentage of the money you spent. It can range from 1% to 5%. For instance, if you have £100,000 to invest, you would pay £1,000 every year. However, it can go up to £5,000, depending on the advisor.  

The fixed fee is a popular method for other services such as money management, debt consolidation, and the like. This method is best for people who want advice on one single issue.

Hourly charge method is also familiar with people. It is more expensive than the rest. It is commonly popular among those advisors who have a reputation for their work on the market. If you opt for this method, make sure that you have a complete breakdown of the work they have done and how long it will take.

Wrapping up

Finding a financial advisor can be a tricky job. While there are various counsellors, it seems like finding a needle in a haystack. Make sure that you have researched well and you are not going to drain your money.

Consult an advisor who is FCA authorised. You can get to know about their authorisation at the FCA website. Your advisor must have at least diploma-level certificates in financial planning, or it is better if they have an advanced diploma. Ask your friends if they know someone expert at resolving issues you are currently facing.

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