The Power of Independent Advice
Objectivity isn’t something that most of us consider or wonder about when it comes to financial advisors. It just stands to reason that anyone helping people secure their future and achieve their goals would always place the best interest of the client first. Right? In reality that’s not always the case.
Because of their size, resources and overhead large financial institutions are likely to have business models that force their advisors to steer their clients toward products and services which benefit the company financially. It’s simply a matter of maximizing their profit. Often these products and services are “proprietary” and can’t be purchased anywhere but through them. And because they receive maximum profit from products and services that are created internally, they promote these products over similar products and services available elsewhere. From the perspective of big business, you can’t be surprised at them for placing themselves first, as ultimately they must work to increase profits and satisfy their stockholders.
The independent advisor offers an approach based on objectivity. The independent advisor examines various methods available for meeting the need of the client and chooses 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 or any increased compensation for recommending the company’s proprietary product line. There is no one size fits all approach to taking care of people seeking a solution to a financial issue.
Of course no one has a crystal ball or a way to forecast the future, so there’s no guarantee of success with any financial decision. But with an independent advisor you have an opportunity to examine solutions to your unique situation and get advice based on his experience and objectivity, not the policies or objectives of a large company.