Independent Financial Advisors
As the global economic situation continues its downward spiral, many people feel that they are in need of financial advice. However, some find that advisors employed by financial institutions to be less than trustworthy. It is not uncommon for them to promote the agenda of their employer rather than looking after the best interests of the client. This has sent many either attempting to negotiate the mire of financial possibilities alone or seeking financial advice. But how does an independent advisor work?
Many advisors who are employed by a financial institution are salaried and sometimes receive bonuses based on the financial plans they sell. Independents, on the other hand, often charge a low hourly rate and receive a performance-based commission. This means that the independent advisor's livelihood is directly dependent on how well his advice works out. The lower the return to the customer, the lower the advisor's pay. This means that, instead of pushing certain programs and investments that are favored by the institution's management, the independent advisor will work harder to maximize the customer's return. The independent is personally vested in making sure the client's money works the hardest.
So, in these days of pinching every penny and saving every dime, more and more are turning away from large financial institutions in favor of independent financial advisors. Many are drawn by the feeling that an independent advisor shares the risk with the client and therefore will work harder to provide a favorable return for the client. People are more protective of their money and are more likely to trust the independent.