To be successful in life, just hard work may not be enough. You’ll also be needing proper financial advice. This becomes even more important with your finances.
While there are many options available, you may want to consider fee-only financial advice for your investments. Fee-only advice is best suited for folks who are casual investors or people who make frequent changes to their portfolio. Since you are not tied into any long term contract, you can easily move between and listen to different financial advisers as you like. You may also engage the services of multiple fee-only providers at the same time.
The chief advantage of fee-only financial advice is that you would not have to double-check their reliability. When you opt for an in-house advisory option, the financial advisor may try to hard-sell in such a manner that you would end up having to purchase his products. Ask yourself who is the first client, you or him. It could be much cleaner if you pick a fee-only SA financial advisor. Since the advisor has nothing to sell, he would never need to sell his line-up of products to you forcefully.
Another advantage of fee-only advice is you’ll never be a restricted to a particular range of investment options. The independent advisors who provide fee-only financial services can project your finances into a vast universe of choices. Opening this door can widen your overall portfolio and helping you tackle risks inherent in the investment. Moreover, you’ll be growing your future planning options.
The next benefit of fee-only financial advice is that you can get counsel without being tied to a long term contract. This is in direct contrast to subscription-based advisory services. In the former, you have to pay on a per-instance basis which means that when you do not ask for advice, you do not pay for it either. On the other hand, in subscription-based investment advisory, you have to keep on paying regardless whether you seek the advice or not.
While it lacks the extra features that people think they get for free in the other two cases when calculated on a net basis, the fee-only financial advice turns out to be a far more pocket-friendly and portfolio-friendly choice for most investors.
It may look expensive in the short run to pay a fee for advice but consider the bigger picture before you make your final selection. Ask yourself, “Is this action helping me toward my long term objectives or not”? The answer to the question will help you know the way forward.