I need help managing my £1million nest egg but I don’t trust financial advisers – how can I pick a good one?

So far I have managed my own investments and savings and now I am in a position where I think I need help managing my money.

I have managed to grow my savings to £850,000 invested entirely in a cash ISA and £150,000 in shares in a single company. I am also mortgage free.

I have a huge trust issue, certainly with people, money and the fact that I don’t understand financial advisor fees.

I know I need help with financial planning in the future and would like to get a financial advisor who is trustworthy and transparent about the fees they charge.

How can I find a financial advisor who is trustworthy in their advice, fees, and that I can work with? DN by email

Harvey Dorset from This Is Money responds: Managing your money can be a daunting prospect, especially when you have a large amount saved.

Fortunately, it seems like you’ve been monitoring your savings well so far.

On the other hand, it is not so easy to easily accept the advice of others, especially if one has difficulty trusting them.

Adding in the fact that you say you don’t understand advisor fees, it’s understandable that you’re loathe to take the plunge for fear of getting ripped off, even though you know you need help.

In terms of trust, the best thing you can do is make sure the adviser you choose is regulated by the Financial Conduct Authority (FCA). This means the advisor will have completed certain qualifications, such as Certified Financial Planner qualifications.

When finding the right advisor for you, it’s worth considering what specialty you need. In your case, this could be an investment, but you can also opt for a specialized pension advisor if you want to focus on planning for the future.

Andrew Smith, Independent Financial Advisor at Flying Colors, responds: First of all, congratulations on saving such huge savings. It’s clear that she’s worked hard to get to where he is now and has probably made some sacrifices along the way.

That said, I’m willing to bet that if you had worked with a financial advisor at the beginning of your investing life, your liquid assets would be worth much more than they are today.

While you have probably kept your wealth management costs down with cash ISAs, over the years your wealth will have generated very low returns. Additionally, you have significant cash savings, and while interest rates currently look quite attractive, too much cash is likely to overexpose your savings to the impacts of inflation, eroding their purchasing power.

On the other hand, owning individual stocks can offer attractive returns. However, they are high risk and may not be the best for your long-term financial planning.

A significant drop in the value of these stocks as you approach retirement could be detrimental to your quality of life in those golden years.

I also suspect that any wealth you wish to pass on after your death will be subject to inheritance tax. If you want your loved ones to inherit as much as possible and not the taxman, a good financial advisor would be the best option to help you.

The good news is that it’s not too late to get significant value from financial planning. A good financial advisor will help you understand your financial goals and aspirations from the beginning.

You should feel comfortable volunteering personal information, so be prepared to spend some time “feeling out” the advisor. Ultimately, you may work together for many years, so it is important that you respect each other and enjoy each other’s company.

In terms of finding a reputable advisor, the good news is that the regulatory environment for advisors today is at a much higher level than it was 30 or 40 years ago.

The FCA requires all advisers to meet certain professional standards. This is the regulator that regulates advisers and their businesses in the UK.

In terms of finding a financial advisor, I suggest you ask your friends, family and colleagues who they would recommend, or perhaps ask your lawyer or accountant. Alternatively, online directories like Unbiased and VouchedFor will verify financial advisors and share reviews from their clients. For added peace of mind, you can consult the FCA register.

In terms of fees, these should be clearly established and agreed before any work is carried out on your behalf. I would recommend that you ask the advisor not only about his fee, but also about the value you will likely receive in return. They should be able to demonstrate how, with their advice and guidance, your wealth will grow at a faster rate than the fees they will charge you.

That said, value comes in other forms, not just pounds and pence. A good financial advisor will seek to align your financial plan with your requirements, objectives and risk profile. This should help him feel secure and confident that he will achieve his financial goals, so a strong, long-term relationship with an advisor he can trust is essential.

Karen Barrett, Founder and CEO of Unbiased responds: It sounds like you’re comfortable financially but you’re not sure if you’re getting the most out of your money.

For example, while you can currently get generous rates on a low-risk cash ISA, you could boost your returns by having a diversified investment portfolio.

You could also look at your existing investment of £150,000 in a single company and consider whether you should diversify and invest in more than one company.

One of the best ways to improve your finances is by getting expert advice.

While it can be overwhelming to get financial advice, it’s worth it to get the most out of your money, whether you want to optimize your investments or plan for retirement.

It can also be useful when planning your estate or accessing your pension, to avoid a high tax bill.

Advisers regulated by the FCA must provide their services to a high standard and if you are not satisfied you can make a complaint to the Financial Services Ombudsman.

When you seek financial advice, you will be charged a flat fee, an hourly rate or a percentage of your assets, or a combination, depending on what you need support for.

For example, a flat fee may be charged when setting up an annuity, while an hourly rate (£150 per hour on average) may be charged for quick jobs such as moving investments.

If you want an advisor to manage your investment portfolio over a long period of time, they will probably charge you a percentage of the total value of the portfolio.

An advisor should give you a clear description of the fees you can expect before receiving financial advice, and it should be more valuable than no advice at all.