Financial Advisors

MrT_5

You are often told to consult an independent financial advisor. What does it cost to consult one on average? If he/she advises you wrongly what are your rights? How do you know you can trust them?

I'm thinking of getting rid of an endowment and paying off my small mortgage having worked out that there will not be much gain if any by holding on until 2011 but I want to be sure. The endowment holders say contact them before cashing in or selling but surely they are not going to give me independent advice and will try to make me continue with the policy?

The endowment was taken out for my previous house but when we moved, we went with a repayment mortgage but kept the endowment going. It's not worth much but would pay the mortgage off if we cashed it in. I'm not sure if that is the correct road to go down having heard that you can sell them for more?

I suppose I need independent financial advice really

EdInvestor

Post some info about the endowment and we can give an indication.

Company it's with
Guaranteed sum assured
Declared bonuses
Surrender value (ring up and ask)
Monthly premium
Maturity date
Maturity projections

MrT_5

EdInvestor wrote:

Post some info about the endowment and we can give an indication.

Company it's with
Guaranteed sum assured
Declared bonuses
Surrender value (ring up and ask)
Monthly premium
Maturity date
Maturity projections

It's okay I wanted to know about financial advisors really. Thanks.

dunstonh

What does it cost to consult one on average?

Like any profession, you have varying rates. Each IFA has to provide information about their fees at the first point of contact.

If he/she advises you wrongly what are your rights?

If you have been given advice on a regulated area and you are not happy with that advice then you can take it up initially with the adviser and if you are still not happy, the FOS is available to you to review your complaint and the response of the adviser. The FOS is independent and will not favour one part over another.

How do you know you can trust them?

Look at the quality of the advice. Look at the reasoning and look at the research. Most advice can be backed up with facts and the research can show those facts.

The endowment holders say contact them before cashing in or selling but surely they are not going to give me independent advice and will try to make me continue with the policy?

Almost certainly they will want you to keep it.

EdInvestor

Almost certainly they will want you to keep it.

Not necessarily.Penalties are charged on surrender and some providers make quite a nice profit. If you ring up and ask for a surrender value they will just give it to you, they won't usually provide advice.

If you want a more independent evaluation of the policy's value, try and sell it.The TEP traders should give you a quote if the policy is worth any more than what the insurer will pay.
https://www.apmm.org

Many of them are not these days, unfortunately.