Never before have we been surrounded by so much bias. Not only our internal bias, but the bias of financial interests from companies, corporations and politicians all vying for our support and endorsement. Sometimes this influenced information is helpful, but most of the time it simply overwhelms us and clutters our ability to make sound, financially confident decisions.
Here are a few reasons why having independent financial advice will empower you to thrive.
1 – Independent financial advice considers best-of-breed products
Let’s use an example from horse racing. Imagine you have R1000 and want to bet on horse racing. You could simply go to your nearest track and place a bet on the horse you like the most. Or, you could hire an independent professional to take with you.
A professional mentor or adviser will understand the difference between racing venues and the horses that compete there. They will understand the conditions and the risks better than you. They will also be independent of the horse (so they won’t push you to bet on their own horse…)
They will take you to venues with better breeds and breeders, where chances of receiving larger amounts are far more favourable and less risky. Not only are they in the right place, but the advisor will know which horses and races to bet higher or lower on.
In the same way, independent financial advice means that you’re able to access and select better options for your needs.
2 – More flexibility with your portfolio when your needs change
You know what they say – the best musicians are jazz musicians, because only the best can perform impromptu genius at the drop of the hat. Financial advisors are like jazz musicians, knowing how to change a financial plan quickly and effectively when big life changes happen and, more importantly, exactly what to do financially to get the outcome you need.
Independence means that they can advise you without preference or bias from a product provider to cloud the conversation.
This also brings a whole other benefit – less angst and time-consuming stress for you in an important life event, like expecting your first child or planning a wedding.
3 – Independent financial advice focusses on you, not the products
Independent advisors have chosen not to be tied to any one product provider, which means they are free to consider your needs and circumstances first, and then align those with appropriate and value-adding solutions.
It’s all about equipping your portfolio with what you need to thrive. If you had a company that was doing fine but needed a boost in a certain department, chances are you’d hire someone to help.
And you wouldn’t want just anyone; you’d want the most qualified person for the job, someone who can do what you can’t and work with you as a team to realise your goals. And that’s exactly what your money needs from you.