What kind of Personal Finance advisors are there?

Personal finance advisors come in different varieties. There are three types for the moment, with the prospect of a quarter in the horizon.

The main categories of financial advice are:

Direct sales people

These advisors are directly employed by the organization that provides the financial product or productos.Ellos must be qualified personal finance advisors, but can only sell products offered by your employer. This is the kind of consultant who is more likely to occur if you wander in a Bank Street or in one of the largest building societies seeking help, or call a direct insurer renown.

Tied agents

These advisers working for themselves or for a company, a limited range of products from venta.están agree not tie to any one organization and sell only products that signature.They may be able to bind to a second or third company where its main tied company not operating in that part of the market.

For example, can have a main draw covering life insurance, pensions and investments, and affiliate links for income replacement insurance and medical insurance privado.Una time plus tied agents must be qualified but cone only advice on and sell the product of the Organization to which they are linked.

Independent financial advisers

These advisers of personal finance, commonly known CMI are free advice on products from across the market.They can select and choose the best suppliers for pensions, different companies for Isas and other companies to the life or health insurance.

In theory an IFA can review throughout the market before recommending a product to usted.En practice, most have their regular for certain types of business, Favorites list that gradually changes from one year to another.

There is a fourth type of personal finance Advisor ready to shake the mercado.En time of drafting this report, the British Government was starting to relax rules say advisers have to be tied or independiente.Piensa there is space for a new category of consultant: one with multiple lazos.Es say, adviser may enroll sell on behalf of five or six different pension companies and deals with ten different investment houses.

Initially, only be about supposedly simple products, such as pensions [http://www.seek4finance.co.uk/pensions] stakeholders such multi-ties.En time, rules may be relaxed yet más.CMI I dislike the idea.Temen which will lead to more confusion, self invested personal pensions or a reduction of income scheme is therefore essential independent counsel.

Always look at all the circumstances of their family and personal finance before enrolling in a política.Si really don't need, then not comprarlo.Las monthly premiums could be used to help build a nest of inversión-huevo.