Why Consulting A Fee Based Advisor On Sipps Can Be A Good Idea
In an ideal world, free advice can be considered a good thing
, but this evaluation does not hold up in every situation. In some cases, when unbiased, careful well-thought advice is required, sometimes investing in a fee-based financial advisor could be a worthwhile course of action. For an agreed fee, a financial advisor can take the time to consider the complexities a given situation, consider a number of courses of action and only then develop an appropriate retirement strategy, including pensions, SIPPs, investment management and tax planning.
The topics of personal finance, retirement planning and investment portfolios are not simple, so it is useful to consult experts for the sound possible guidance. Knowing who to go to is very important.
Good quality professionals are trained to listen to the specific needs of their clients and offer the appropriate solutions. At the outset,when a financial advisor first meets a client, it is very important for the advisor to listen. After all, in matters of financial planning, Richmond residents may have very different financial needs and circumstances. One might be focused on a buying that holiday home abroad to enjoy during his retirement , another might be concerned about funding long term care, whilst another might be keen to pass on his wealth to future generations All may have very different professions, retirement ambitions and sums available to contribute, so each case must be taken individually.
An independent fee-based Chartered Financial Planner will charge a fee for their services, since they earn no commissions from selling financial products. However, these charges will be transparent and outlined up-front before any work is undertaken.
Paid to Advise, Not to Sell
The crucial thing to realise when dealing with a Chartered Financial Planner, who charges a fee, is that their occupation is to provide good quality advice based on the particular circumstance and needs of the client. They do not sell products, and are not associated with any institutions. Basically, they are paid to advise, not to sell. What this means is that any recommendations made are based on what the client needs, not on what the product range comprises. Therefore, the financial advisor will recommend appropriate products and services from a variety of different companies and these can be changed as and when necessary.
Fee Charges
Since product sales mean nothing, the independent advisor needs to maintain a fee paying clientele in order to earn their own living. Frequently, there is an initial one-off charge for developing the initial financial plan. Thereafter, if the client wishes to have their portfolio of investments managed, the fees are typically a percentage of the value of the portfolio, with a sliding scale dependent on the size of the portfolio. Although choosing a financial advisor depends on a variety of factors from training, experience, and personal chemistry, cost can play an important role in the overall performance of your investment portfolio. As fees do vary from advisor to advisor, so it is generally worthwhile to ask what the total charges will be each annum.
It is sometimes thought that the advantage of a fee-based advisor is that their business model depends on maintaining long term relationships with their clients. The quick fix is not an option and they will invest their own financial well being in the financial future of their clients. Significance of Chartered Status It is important to note that Chartered status is very significant in the financial world, one that particularly difficult to attain. Currently, less than 400 firms are Chartered Financial Planners, a prestigious status only awarded by Chartered Insurance Institute.
The result is that only the highly trained professional firms operating to a high code of ethics can get the chartered status, so they can be trusted to provide good quality advice on investments, retirement plans, pensions and self invested pension schemes. So, when seeking sound recommendation from a chartered financial planner on financial planning, Richmond doctors can learn their healthiest options, Surrey dentists can polish their retirement options, and London businessmen can consolidate their investment portfolio.
by: Sarah Shore
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