Whether you are just getting started with the concepts of investing or you need help allocating the funds you have amassed that have grown too cumbersome to manage on your own, you have options. An independent financial advisor can help you to properly utilize your assets to help your net worth grow. However, if you are not sure what it means to be an independent advisor or how they may help, be sure that you learn more before making a decision about which company to trust.
What Does It Mean For An Advisor To Be Independent?
You will likely encounter a wide variety of potential advisors during your search, and not all of them will be independent. An independent advisor is not working alongside any certain subset of investment products; their services do not necessarily align with any particular company, which means that they are not prone to recommending a certain type of investment or product that benefits them rather than you. They are also fiduciaries, meaning that they operate with your best interests in mind.
Provides Guidance Customized To You, Not Commission-Oriented
As mentioned previously, an independent financial advisor will be a fiduciary—someone who is looking out for your best financial interests rather than recommending a specific type of product that they receive a commission or bonus on. Independent advisors will take stock of your entire fiscal picture in order to provide customized guidance that suits your particular needs, risk tolerance and goals. They will not take a commission based on recommending certain products, which means that you will receive guidance pointing you toward the option that truly is best for you.
You Can Better Plan Using A Fee Structure
Because independent financial advisors do not receive commissions that many other types of advisors do, they are instead compensated via a fee structure. Advisors may operate differently, and one way is not inherently better or worse than others; some may charge hourly, while others charge a flat fee for a meeting. One of the most common options is for an advisor to charge a percentage of your total account value (typically about 1%) per year in order to manage your finances. This grants you access to them at any time in exchange for this single annual fee, which means that you can make a more comprehensive budget that knows ahead of time how much your advisor will cost.
You Can Find A Specialist
Because independent advisors operate their own offices separate from any particular company, you may be able to locate advisors who are specialists in certain areas that benefit you. If you run a business and need to understand how to manage your profits, you are more likely to find an independent advisor with knowledge specifically in this area. Similarly, some independent advisors specialize in early retirement, debt payoff and more. This enables you to receive highly knowledgeable advice that is directly tailored to your situation.
Your Money Is In The Hands Of An Independent Custodian
Many people are uncomfortable with the idea that the same person who is managing their money is also the one who is holding it. Thankfully, this is not typically true with independent financial advisors. These individuals will instead utilize an independent custodian to hold your money. This keeps your investment secure, not only from problems with your financial advisor but also in the event that something goes wrong; the infrastructure and support offered by these larger companies is more robust and comprehensive than what a financial advisor would be able to offer if something went wrong with your money in their hands. This can be a particularly important detail for some people according to their tolerance of risk and level of trust.
Trust The Professionals To Help You Manage Your Money
You do not need to be a multi-millionaire in order to benefit from financial advising. However, regardless of whether you are just getting started on your investment journey or you need help with large amounts, it is important that you trust an independent financial advisor who has your best interests in mind as a fiduciary. At Inflection Advisors, we understand that your financial health is one of the most important aspects of your life. As such, we strive to provide the high-quality and expert advising that you need in order to succeed and reach your goals. Get in touch to learn more about the services that we can offer or to get started on a customized path to managing your money to achieve your goals over both the short and long term.