Financial Advisor

(The weekly series - Pocket Money - where I explain financial basics in fewer than 200 words. Feel free to make suggestions!)

A financial advisor is a professional who helps you manage your money. They could advise on investments, retirement planning, insurance, taxes and more general budgeting. 

They can be employed by companies like banks, building societies, mortgage companies or investment firms but they can also be independent. Generally the difference is that the employed financial advisors are limited in what products they can offer. They can also specialise in particular areas like mortgages or pensions. They work in a fiduciary capacity so have to work in your best interest. 

They are regulated by the Financial Conduct Authority (FCA), have to be registered with them and uphold the correct training and competencies and follow strict rules. You can check any financial advisor on the FCA’s register. 

They can charge a flat fee, an hourly rate or a percentage of assets that they manage for you. Whether a financial advisor is right for you is a delicate balance but certainly with complex situations like a large inheritance or going through a divorce, it might well be worth considering one.

Love Eleanor. xxx