So far, we know the word independent as something good. An independent person can decide a matter independently and has the freedom to do his own thing. It is the same as an independent financial planner from UNHW financial advisor who is not bound by one firm’s proprietary products. Independent financial planner is not the same as financial planner regularly, and they have the freedom to provide advice to clients according to what the client needs. Because they do not have to sell certain products required by the company, this kind of thing is liked by many clients, because their advice feels more objective and impartial.
What should I expect to pay an independent financial planner?
Common asked question is either ‘what can an independent financial planner do for me’ or ‘How much does an independent financial planner cost?’. These questions are probably one of the questions you might be asking too. In general, advice fees can be anything from around $500 for investment advice to $5,000. There are even over $5,000 for some type of retirement advice.
Every financial advisor may be charged in different ways. There are several ways to pay a financial advisor. The most commonly used is a fixed fee. Many people like this type of fee because it is more transparent. You will know how much you need to pay from the beginning. However, you need to ask for written confirmation of what is included in the fee and make sure you know what you will pay for.
The second way is from the percentage of assets, or we usually say Assets Under Management (AUM). Rather than a flat fee, an advisor who manages your investment portfolio over some time may prefer to charge a percentage of the total portfolio value. Some clients also prefer advisors who use this method, because indirectly, advisors have the same goals as clients to grow their assets.
And last but not least is the hourly rate. For certain services, some advisors may charge an hourly rate. In the USA, the average hourly rate is about $150 per hour. You may want to use this type of fee for small, quick jobs such as moving investments on your behalf. Make sure you ask the advisor about an estimated time of how long the work will be done.
Costs should be discussed upfront before you start working with a financial advisor. Make sure the budget and payment method are by your financial condition.
When do you need independent financial planner?
You may be confused about whether you will hire a regular financial planner or an independent financial planner. Here’s the answer. If you’re seeking out personalized advice for your investment and financial planning, an independent financial planner may be right for you. They will make customized guidance based on your entire financial planner. They will build a strong, attentive, personal, and responsive relationship with you. They can support your complex financial needs. Another thing that is no less important is that your money is held by an independent custodian, not the advisor firm.
When should you use an independent financial planner?
Finances are the most important issue. Although money is not everything, we can do anything with money. For example, make your family happy, helping other people, buy a house, send your daughter and son to university, etc. Working with a financial advisor is valuable, but there are certain times when it can be essential to your life and maybe a point when you really need to hire an independent financial planner.
First, you want to buy a home. Buying a home will be your biggest purchase and the most financial burden on your working life. It can be stressful when you don’t really know how to reach out. A financial advisor can help you create an overall financial planner to ensure that you can afford that property at a certain range of time and amount. Of course, this must be accompanied by a proper implementation.
Second, you may want to start saving for your pension. We do not want to work forever, right? You need to prepare for your pension. Better start from now, because you don’t know what you will face tomorrow. Also, the most effective pension saving takes place when you are young. Savings take time, and you need to remember that.
Third, having a family. It is not easy to raise one child. From baby until becoming a university student, there are so many needs that cost a lot of money. It is good if you want to calculate and predict your child’s education now. It can help you when building an investment strategy.
You may have any other essential needs such as investing in property, accessing your pension, financing retirement, and long term care. You probably need an independent financial planner to give you impartial advice along your financial journey.