5 Benefits Of Working With An Independent Financial Advisor

Whether you’re in the market for specific strategies like growing your investments, planning for your retirement, or other related financial services, choosing to work with a financial advisor is an important decision. With that in mind, a decision also needs to made if you would prefer to work with an independent financial advisor, or a financial company. In this article, I’ll break down what that means and why it matters, based on your needs.

Why is it so important to have an independent financial advisor?

A financial advisor and investment specialist are responsible for the individual or group of individuals whose portfolio is being managed, so that deep, professional relationships are formed with the client/s, which creates a strong sense of accountability. An independent financial advisor is not beholden to sell the products from one company or a chosen handful of companies. This is important so that the advisor can choose from a wide selection of different options best suited for the individual.

Benefits and advantages of working with an independent financial advisor include:

A financial advisor offers customized guidance based on your overall financial picture

An independent financial advisor is not tied to any particular family of funds or investment products they have been trained to sell or recommend. Whether it’s assistance with wealth planning, tax planning, estate planning, offshore investing and advice, retirement planning, making tax-free investments, or managing assets, an independent financial advisor has the freedom, independence, experience, and professional education to tailor their advice based on what’s best for you, at every stage of your life.

A financial advisor saves you time

Wealthy individuals know how important time management is, so it needs to be spent on the most productive tasks. An experienced financial advisor understands your time constraints and concerns and can reduce the time you need to create a custom plan, which will save you many unnecessary months on effort and research. We can identify your immediate, medium, and long-term needs and set a strategy for you to achieve them, while at the same time developing a custom investment strategy. 

A financial advisor relationship that’s responsive, attentive, and personal

To best serve their clients, an independent financial advisor seeks to develop personal relationships, to fully understand each client’s specific needs and goals. These may be short, medium, or long term and should be matched with the right customised advice and action plan. This often takes regular, private, ongoing interactions.

A financial advisor keeps your spending and investing on track

It’s one thing to start saving or making money, but quite another to retain and grow it. This isn’t just about making smart investment moves, as there will also be market fluctuations, personal emergencies, health-related injuries, and any number of unexpected events that can upset the most well-intentioned of savers and investors. An independent financial planner and advisor will stay on track and monitor your personal life, while also keeping a close eye on what the external market is doing.

A financial advisor focuses on your objectives

One of the single biggest mistakes that can reduce the performance of your investment portfolio is the lack of focus. Investment decisions that are driven by emotion, especially feelings of worry or panic, can undo months or even years of hard planning.

For a professional financial advisor, working hard to maintain an objective view and execute trades based on emotion-free analysis and decision making is key. Things should be no different when it comes to your own investments.

A high-level overview of how a financial advisor builds strong relationships with clients in terms of support:

• Being honest with you and your situation
• Caring about you and your wealth and where it goes
• Someone you can trust and from whom you can receive advice on all your financial matters, at any time of the day
• Listening and asking questions to help you identify and articulate your needs and goals
• Working with you to alleviate worries that keep you awake at night
• Coaching you to do the things that will help accomplish your goals
• Monitoring changes in your life and family situation
• Guiding you through difficult periods in the stock market by sharing a historical perspective
• Acting as a sounding board for ideas you’re considering
• Maintaining confidentiality at all times.

• Perform an assessment of your current financial circumstances, objectives, risk attitude, and long-term goals, taking into consideration any special requirements
• Big picture strategy for decisions on strategic use of money: spend, save, invest, pay down debt
• How much you need to save in every stage of your life
• What-if analysis (e.g. early retirement, second home purchase)
• What types of retirement plans to use
• Pension distribution options that project the optimal age to begin your pension
• Outline your financial position as it stands, describe the alternatives and options open to you and make recommendations
• What type of mortgage you should have, if you should pay it off, or refinance
• What type and how much insurance you need (this would include life insurance, long-term care insurance, disability, and sometimes property, casualty, and health insurance)
• How much to keep in your emergency fund
• Develop a clear picture of what you are investing for (tie goals to investment strategy)
• What changes might improve your tax situation
• What rate of return you will need to earn to achieve your goals over a given time frame
• Whether it makes sense for you to downsize later in life
• Short term, medium-term, and long term investment goal advice
• What level of investment risk is appropriate for different types of accounts you have
• Advice on estate tax planning
• Help make charitable contributions in a tax-efficient way
• Creation of a strategy aimed at preserving your assets from erosion due to unexpected expenses, inflation, market decline, and taxes

And more …

I’m Giles Maynard, a professional financial advisor. I provide individual investment and wealth management services for private clients and companies. I’ve been trusted by clients, large and small to manage, protect, and preserve wealth. How can I help you with yours?