How to Find an Unbiased Independent Financial Advisor Online
It is time for the illusion of unbiased advice once again! The most widely used model of compensation, the hourly or salary model, is no longer satisfactory for a financial advisor. The hourly model of compensation, based on commission, robs money from the investor without providing value. As stock prices rise, asset values drop and advisor wealth increases. Is this what you want for your family?
Before you run out and hire just any independent financial advisor, I have a few things to tell you. There are two types of advisors – fee-only and fee-based. The fee-only advisors pay no commissions; however, they receive a share of the assets under management. The pay-offs to these advisors are not significant.
However, the hourly or salaried professional financial advisors can make six-figure salaries and more every year. The difference in pay can mean the difference between success and failure.
When considering the fee-only advisor model, you must understand that those who represent these types of financial institutions, are selling annuities or other financial products to your future self for a small percentage point fee. Most people don’t realize this. The annuity products sold by these fee-only advisors cost your retirement savings, instead of providing you with a stress-free financial future. In addition to a small fee for their services, they also demand a large investment to compensate them for their services. The larger the investment, the lower your annual retirement income will be.
There are several different annuity products that are offered by the financial advisors.
Some are insurance products, some are savings accounts, and some come in both of these formats. The best financial advisors will be knowledgeable about all of the different annuity products that are available. This will ensure that they are able to answer any questions that you may have in regards to any one particular type of product. The best financial advisors will also have experience with the tax consequences of each individual product.
If you are to become the best financial advisor, it is vital that you have solid credentials and are experienced in your area of expertise. You should seek out a retirement planning and investment consultant that have years of experience in dealing with financial matters. The best independent financial advisors will be registered as investment advisers with the regulatory bodies in their own particular state. They will also have strong relationships with their local boards of investment and insurance.
How to find an unbiased, independent financial advisor online is now very simple.
So, if you are looking for how to find an unbiased independent financial advisor online, then make sure that you are going to obtain all of the necessary information beforehand. The more information that you are able to gather and incorporate into your decision, the better off you will be.