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Heres what you oughta know.
What Is an Independent Financial Advisor?
The primary difference is that independent financial advisors dont work for a large corporation orbank.
Instead, they are usually self-employed.
Both types of advisors can have different fee structures, usuallyfee-basedor commission-based.
Heres what to consider.
Fee-Only
Independent financial advisors can set their rates and earning structure.
Working with a fee-only advisor helps confirm that there arent any conflicts of interest or sales tactics.
Fiduciary
You want to ensure that an independent financial advisor is afiduciary.
A fiduciary manages someone elses money for the owners benefit, not their own.
Registered investment advisors are fiduciaries, but brokers and other money managers arent.
Confirming if an advisor is a legal fiduciary can help determineindependent financial advisor status.
Independent financial advisors arent required to have any of these designations.
Still, it can help you determine who might be a good fit.
Self-Employed
Most independent financial advisorsare self-employed and dont work for a large financial organization.
Asking about employment status, including commission-based employment, can help you determine if an advisor is independent.
Why Choose an Independent Financial Advisor?
Working with an independent financial advisor has many important benefits, including lower costs.
Here are the biggest perks of choosing an independent financial advisor.
The following tips can help you find the best independent financial advisor.
Once you find the right fit, you’re able to work together for decades.
Final Takeaway
Independent financial advisors dont work for a large bank or financial institution.
Because of that, independent advisors might be under less pressure to sell certain products or investments.
FAQ
Takeaway
Finding and working with a financial advisor is a great idea.
A financial advisor will help keep track of your finances and assist you in attaining your financial goals.
Get to know your Financial Advisor options today for Free!
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