Why choose an Independent Financial Adviser?
A key point to bear in mind when you are considering where to go to get financial advice, is that Independent Financial Advisers (IFAs) have no contractual ties to the product providers (such as life insurance companies) whose products they advise on.
In contrast, some other types of advisers, such as ‘tied agents’ advisers who operate in banks and life insurance companies, have contractual obligations to one or more product providers which means the advice they give is limited to the products of these providers.
IFAs act as the agent of their clients and their independence enables them to research products from across the market.
Tied advisers, on the other hand, act as the agent of the companies’ whose products they are selling and can therefore only give you advice on a limited range of products.
Once they have delivered their advice, IFAs follow this up in writing setting out the reasons why they are giving you that advice.
All financial advisers receive payment for the advice which they are giving and their charges are clearly set out and explained to you. This payment may be collected via commission (which is included in the premiums of the product you have bought) or be payment of a fee direct from you.
1. Offers fair and objective advice and product solutions
As opposed to “reasonable basis” advice offered by exempt financial advisers eg. life insurance companies, stock brokers
Not obliged or tied down to a product or company, thus not tainted by self-interests
Thus able to provide more competitive products and terms
2. A wider range of products and services to choose from
Have access to a range of at least four different products
Able to select any suitable products from the market place without restrictions
Not restricted to investment choices of particular companies
3. A client-centric industry
Exempt Financial services companies put their need for revenue and profit ahead of investors’ needs
IFAs put clients’ interests first
Clients are given good and timely advice, choice of “best of class” products and good continuing service
Rationalizes and explains why a product is the best fit for the client
4. More flexibility and freedom to plan for clients’ long -term financial goals
No commercial arrangements with product providers, thus is free from any form of product restriction
Equipped with the freedom to construct a portfolio that matches your clients’ personal circumstances, requirements and risk profile
5. Personalized service
The fact finding process ensures that advisors get a full understanding of the clients needs by taking account of their personal wishes, circumstances and attitude to risk before any financial product can be selected
Takes the effort to find out about the clients objectives for the future and their plans are for the short, medium and long term
Analyzes clients present situation and recommends improvements to be made to existing arrangements
Works closely with the client and moves towards establishing a long-term relationship with them
Here are some of the benefits of using a financial adviser:
* An Unemotional Assessment – The financial adviser will give you an unemotional assessment of what needs to be done. Money is an emotional topic for many people, which often leads to bad decisions.
* Allocate Resources – It is likely you have competing priorities, such as sending the kids to college while building a retirement fund. A financial adviser can help you allocate resources so both goals receive the appropriate share of dollars.
* Minimize Taxes – Most investment decisions carry some type of short or long-term tax implication. Your adviser can help you shape your investments in a manner that keeps taxes to a minimum and more of your dollars invested.
* Estate Planning – Careful planning will help ensure that your estate passes to loved ones in a manner that protects as much of its value as possible.
Why choose an Independent Financial Adviser?
A key point to bear in mind when you are considering where to go to get financial advice, is that Independent Financial Advisers (IFAs) have no contractual ties to the product providers (such as life insurance companies) whose products they advise on.
In contrast, some other types of advisers, such as ‘tied agents’ advisers who operate in banks and life insurance companies, have contractual obligations to one or more product providers which means the advice they give is limited to the products of these providers.
IFAs act as the agent of their clients and their independence enables them to research products from across the market.
Tied advisers, on the other hand, act as the agent of the companies’ whose products they are selling and can therefore only give you advice on a limited range of products.
Once they have delivered their advice, IFAs follow this up in writing setting out the reasons why they are giving you that advice.
All financial advisers receive payment for the advice which they are giving and their charges are clearly set out and explained to you. This payment may be collected via commission (which is included in the premiums of the product you have bought) or be payment of a fee direct from you.
