Hiring a financial adviser is an important step in successful wealth management. When starting your search, one of your initial considerations will be whether to hire an independent or tied agent.
What’s the difference? Tied agents sell products from the financial house to which they are affiliated. This gives them access to strong support systems but it also limits the advice they can give as they cannot step outside their house. This means you might be forced to fit into an already established client ‘box’ – a pre-determined group complete with offerings that are fine but not necessarily tailored to your specific needs.
Independent financial advisers work for themselves or for financial firms and have access to a wide range of products and offerings.
Here are 3 reasons you should consider working with an independent financial adviser:
They might not have the backing of a large financial institution but they are free to select from a wide range of products. If they are doing their job correctly, this means they can customise your portfolio to suit your unique needs.
Most independent financial advisers are only paid for the advice they give you or, in some cases, the advice you use. Because they do not receive a salary (like in some larger institutions), they are more motivated to get the job done while delivering a quality service that will have you staying loyal in the long-term.
3. Tailored advice
With large financial houses, there is a risk that you will end up being just another number, in terms of both the service you receive and the advice that is given to you. Professional independent financial advisers will take the time and care to get to know you as an individual with unique needs and goals that need to be recognised when putting in place a financial plan.
Do you need:
- Further guidelines on what to ask a potential financial adviser? Before you meet (and sign up with) a new financial adviser, consider what other essential qualities they must have in order to enjoy the privilege of looking after your wealth.
- To be sure your current financial adviser is on top of things? Make sure they are truly focused on your needs by asking them these five essential questions.
- To find a new financial adviser? It’s important to ensure your selected adviser has the credentials and expertise to protect and growth your wealth.