The benefits of using an independent financial advisor
Published Thu, Nov 29, 2012 Updated Tue, Feb 16, 2021
With any significant financial decisions, such as when looking at pensions, investments or mortgages, it’s always a good idea to use an independent financial advisor in order to help you make the best decision possible. Getting excellent advice is well worth it, and often helps save or even make money in the long term, so seeking advice is always worthwhile.
Great value for your money
The primary benefit of hiring an independent financial advisor is of course the fact that they are independent. This means that they earn their money directly from you, rather than on commission. Advisors that receive money from the companies that they recommend might seem attractive, as their services are free to you, they are not necessarily good value for money. This is because an independent advisor will look at all of the options that are right for you, not just the ones that they will earn money from. This could mean that they find you a far better deal which saves you money. Remember that independent advisors may not be individuals; a company may well be classed as independent too. In the future, it is likely that all advisors will be independent.
Access to expert advice
Financial advisors are of course experts, which means they are better placed to work out which financial opportunities, options and products are the best, taking all of their aspects into account. It can be extremely difficult to work things out yourself; particularly regarding statistics and jargon. With an advisor, you don’t need to work these kinds of things out yourself. Having said that, it’s always good to have some knowledge of whatever you’re looking in to, so that you are still in a position to make your own informed decision.
Find your best options
There can be a huge range of products when you’re looking for something. This is particularly significant when it comes to pension products such as annuities. There can be an enormous selection of rates and fees. Finding the best product can only be done through looking at all of the options, and an advisor is far better placed to do this than you. There are some comparison sites which may give you a good range of choices, but you can never be sure that you’ve found your best option until you’ve seen them all.
To conclude, if you’re thinking about making any important financial decisions in the near future, then it could be a good idea to get some sound independent and professional advice. Do your own research first, and when you’re confident then you can seek out an expert advisor. If you choose an independent one, then you can be confident that you’ll be getting impartial advice, and that the options you’re being given are the right ones for you.