Money may be hard to manage if you don’t have any experience managing your own money or don’t have anyone around to help you manage your money. When you want to plan your finance, you may need someone to guide you on your financial journey. Maybe you’re wondering who can help me manage my finance? Don’t worry, and now you’re in the right place because you can find the answer after this about independent wealth manager.
Did you ever know about an independent financial planner? Or just simply an independent wealth manager? A financial planner or financial advisor is a qualified investment professional who helps meet their long-term financial objectives. Usually, financial planners are tied to the product owner of one company. However, an independent financial planner is an advisor who is not bound by the minimum production requirements of a particular investment or insurance company or is not bound by a single company’s product owner. Independent financial advisors are people who do not represent insurance companies, banks, or bancassurers but prefer to work independently directly for their clients.
What Does Independent Financial Planner do?
As we’ve told you earlier, a financial planner helps you achieve the long-term financial goal by organizing your finances and projects, and then you can see the result as to how well prepared you are for retirement. It doesn’t stop there, and they also help you reach your financial goals as efficiently as possible by helping you make decisions with your money.
Unlike financial planners in general, independent financial planners prioritize relationships with clients. This can happen because they are not bound by a particular investment or insurance company’s minimum production requirements or are not bound by product ownership of one company.
Every financial planner also has his respective expertise. Therefore the services provided will differ from each planner. Of course, you need to match what a financial planner can do and what you need. Do some research on independent financial planners before you choose one.
Keep in mind you are still in control of your wealth. However, you can ask an independent financial advisor to manage all or part of your investment portfolio. You also have strong access to financial objectives analysis and other financial advice in areas such as estate planning, taxes, and business succession. It also helps you find the right advisor for you.
Types of Independent Financial Planner
There are two types of independent financial planner based on compensation. Most independent financial advisors charge fees based on a percentage of your assets under management (AUM). You can trust this type of advisor because they also want to grow or preserve your portfolio.
On the other hand, there is some independent financial planner charge fee only. This type of compensation is more transparent because you will know exactly how much costs you need to pay. They also don’t receive commissions or referral fees. Clients only compensate them based on the assets they are responsible for managing.
What is the Best Independent Financial Planner?
Independent financial planners develop deep personal relationships and have a strong sense of accountability to their clients because independent advisory firms are usually held by individual advisors.
Independent advisors have increased their assets under management by more than 14% year over year since 2008. This number is expected to grow by another $ 1 trillion in the next two years (2015-2016) alone. Therefore independent financial advisors are named as one of the fastest-growing areas in the financial services industry.
Also, there are some benefits to working as an independent financial advisor. First, you get customized guidance based on your entire financial picture. Independent financial advisors have the freedom to help their clients from a wide range of investment options because they are not tied to any particular family of funds or investment products. They tailor their advice based on what’s best for you and what you need. They can help you witha tax situation, retirement planning, estate planning, or managing the client’s assets at various places.
Second, you will have a strong relationship that is attentive, responsive, and personal. Independent advisors must build an understanding and strong advice of your financial situation, in the beginning, to offer advice as near as aligned with your financial goals as you might probably know that independent financial advisor is prioritizing and focus on building deep relationships with their clients. You may take regular and ongoing interactions with the advisor. Also, they are very responsive to their clients because many of these advisors has experience about creating financial plan and fixing financial issues.
Third, your money is not held by the advisor firm but by an independent custodian. To hold and safeguard clients’ assets, independent advisors use independent custodians. Your money is not held by the same person who advises you about how to invest it. This provides a reassuring system of checks and balances for many investors.