Good advice begins with understanding
A professional financial relationship should involve more than a product recommendation. It should begin with your objectives, the outcomes you are trying to achieve and the risks you can genuinely afford to take.
1. What are we trying to achieve?
Ask your adviser to explain the goals in plain English, including the timescale and what success would look like. If the aim is not clear, it is difficult to know whether the proposed solution fits.
2. What could go wrong?
Ask about market risk, inflation, access to your money, product provider risk and what may happen if circumstances change. A balanced explanation of downside scenarios is a sign of a more useful discussion.
3. What will this cost me?
Ask for the total cost, not just a headline fee: initial advice, ongoing charges, product fees, transaction costs and any exit penalties or restrictions. Understand what service you receive in return.
4. How will progress be reviewed?
Agree how often the plan will be assessed and who is responsible for acting when things change. A well-documented review process matters as much as the original decision.
5. How are you authorised, and whose interests do you represent?
Check the adviser's authorisation, the basis on which recommendations are made and any conflicts of interest. In the UK, the Financial Services Register can help you verify firms and individuals; other countries have their own regulators.
The value of a clear conversation
You should leave a meeting understanding what is being recommended, why, what it costs and what happens next. If the explanation is too complex to follow, ask for it again in simpler terms.