Finding A Good Financial Adviser and Tax Adviser

hobbesandco

Hello all,

My partner had to sell his company shares due to it being taken over earlier this year. As a result the money he got back is now classed as income as opposed to capital gains which means he now has to file a tax return. I could have done this for him on-line but as I also need to take out life insurance on my partner (preferably within a trust) I need a financial adviser to set up a trust for both of us. My questions is does anyone have any good advice about finding someone reputable. Are there questions I should be asking? My and my partner's tax situation could get a little bit more complicated in future years as:

1. I am setting up my own business next year. Haven't decided whether or not to add my partner yet
2. I am thinking of buying property either here or in Canada within the next 5 years or so
3. We are thinking of moving to Canada within the next 5 years of so and as I'm Canadian I will need a tax accountant who is au fait with both countries' overly complicated tax regulations!

Can anyone provide some good advice on how to find a good financial adviser. Someone I can trust over a period of several years and will act in my interests not their wallet's? I already know that independent financial advisers are better than commission-based ones but I also need to find someone who has the same sort of approach to investments that I do. I don't want to end up arguing with them either!

dunstonh

My questions is does anyone have any good advice about finding someone reputable.

Its a tough one. Getting a good financial advisor is no different to getting a good plumber, builder, doctor etc. Often word of mouth is the best way.

Given your situation, you would probably be better dealing with a small local firm rather than a national salesforce. If you can deal with the partner/owner/director, then you should have no problems with them moving on in the years to follow. Large national firms tend to have a higher turnover and you are not guaranteed to deal with the same person each time.

I already know that independent financial advisers are better than commission-based ones but I also need to find someone who has the same sort of approach to investments that I do. I don't want to end up arguing with them either!

IFAs have to give you the option of paying either on a fee basis or commission basis. They are not allowed to call themselves IFAs if they do not allow you to pick fees. The other types of advisor are whole of market (like IFAs but do not have a fee option), multi-tied (limited product provider range - usually from a panel of 3-5 providers) or tied (single provider). You want to avoid using any of those as they are usually more expensive and usually more sales driven.

As for whether you will get on with them or not, well thats a personality thing and you arent going to know that until you speak with them. To make sure they can deal in your area, ask them before you commit to an appointment. Don't be afraid to ask what their experience is and how often they deal in the areas you want to look at.

cheerfulcat

Hello, hobbesandco,

You don't need a financial adviser so much as a good tax accountant ( for the tax questions ) and a good solicitor ( for the trust ). There is a trade association for specialists in trusts called STEP which can put you in touch with someone in your area

http://www.step.org/

Can't help with finding a good accountant, except to say that personal recommendation is usually best.

HTH

Cheerfulcat

JasonG_2

Hello hobbesandco,

Would agree with the above, either someone you no, or someone your family knows that they have had a good experience with. For your needs I would say most of the advisor types listed above should be able to help for insurance and a trust. You have to think about a firm vs a large corporate the financial strength and the chances of them being there next year. The internal procedures etc. The quality of advice is usually down to the individual. You then have the product mix to think about, ie do I want an advisor who looks at the whole market, one company's products, a selection of products, and then am I interested in paying fees, as if you are you need an IFA.

Would just like to say generally a financial advisor and a tax specialist (accountant) do very different jobs, they blur into each others, but generally for tax use an accountant, and for financial advice, like a life plan, use one of the above. You could theroreticaly use one that does both, but I wouldnt want any of my clients doing so. Its hard enough to be an "expert" in one area of one proffession, let alone them all, in two.

Perhaps see a couple if you have no leads, and chat about the above issues and see how you feel, it is often about how you like working with someone.

Good luck,

Jason.

dunstonh

You could theroreticaly use one that does both, but I wouldnt want any of my clients doing so.

You cant now. Accountants are not allowed to give financial advice any more. I quite often do joint appointments with an accountant or have handovers between myself and an accountant in both directions. There are a few places of overlap but both roles do have a defined purpose.

JasonG_2

dunstonh wrote:

You cant now. Accountants are not allowed to give financial advice any more. I quite often do joint appointments with an accountant or have handovers between myself and an accountant in both directions. There are a few places of overlap but both roles do have a defined purpose.

I accept your point, but you and I know that "financial advice" as a definition is blurred at times. For example as a layman if a accountant told me I wanted a certain product, ie like you need some life cover, get it from a direct source, we no the official line but etc etc.

I thought it was a useful point for a non industry person to no, who might not actually understand where the defenition of financial and tax relarted advice occurs. But as I say your point is accurate, and while i'm at it I have found some of your posts have been good stuff.