Greetings! I trust that this will find you well and enjoying life.
Objectivity isn’t something that most of us would tend to consider or wonder about when it comes to financial advisors. It just stands to reason that any organization or anyone in the business of helping people secure their future and achieve their goals, would always place the best interest of the client first right? We would all like to hope so, but in reality, that’s not always the case.
Large financial institutions (I’m not calling any names but they’re everywhere) because of their size, resources and overhead, are likely going to have business models that force their advisors to steer their clients toward certain products and service which benefit the company financially. It’s simply a matter of maximizing profit. Often these products and services which are “proprietary” and can’t be accessed or purchased anywhere but through them. And because they receive maximum profit from their products and services that are created internally in their company, they promote them over similar, alternative products and services available elsewhere. It’s a matter of economics. From a big business perspective, you can’t be surprised at them for placing themselves first, as ultimately they must always work to increase profits and satisfy their stockholders.
The independent advisor offers a different approach to what he or she recommends. That approach is based on objectivity. The independent advisor has the ability to examine various methods available for meeting the need of the client and choosing one best suited for the situation, without any influence or demand from any external source. An independent advisor has the ability to provide unbiased advice with no hidden agendas involving sales quotas to be fulfilled, or any increased compensation for recommending the company’s proprietary product line. There is no one size fits all cookie-cutter approach to taking care of people they meet seeking a solution to a financial issue.
Of course, no one has a crystal ball or way to forecast the future, so there’s no lock on the outcome or guarantee of success to any financial decision. But with an independent advisor, you have an opportunity to examine possible solutions to your situation and get advice based on his experience and objectivity, not the policies of the back office.
If we can help in any way with this or anything else related to retirement don’t hesitate to contact us.
Best regards,
Jeff Christian CFP, CRPC
If there is a way to do it better . . . find it.
Thomas A. Edison