Financial Advice - Why paying fixed fees is best
Have you ever taken advantage of “free” financial advice and then bought products which the adviser recommended? If so, did you ever wonder whether there were other options open to you which were not part of their recommendation because those products didn’t pay the adviser for the business? Did you really understand the charges you paid to provide the “free” advice and administration?
The fact is, most financial advice has historically been given this way, with advisers feeling they must give free advice and pre-sale work in order to show their potential client the benefit of dealing with them. Once the business has been agreed, there is usually a percentage of the lump sum which is paid to the financial adviser at the outset and sometimes an ongoing percentage of the funds being managed to cover the ongoing servicing of the client.
Whilst the dirty word “commission” has been banned for any investment business by the financial services regulator, The Financial Conduct Authority, the fact remains that the majority of advice given still generates a percentage of the lump sum which is paid to the adviser on their clients purchasing a financial product or service.
Although this is paid by the product or service provider, it is charged back to the client by way of additional charges. Not only can this be done for the initial fee but it can also be deducted over the years too.
Not only can this be confusing but it is easy to lose track of what is actually being paid to the financial adviser and to work out whether you are getting value for money. We don’t think this is fair.
Paying a fixed fee to The Wealth Care Partnership for advice and not the sale of financial products is the best way to ensure you’re getting completely impartial, independent advice. Any financial product or service recommended has nothing deducted for the adviser which means the investment is better placed to outperform. If the advice is to make no changes to your current financial position, you can be sure this is the best advice for you.
At the Wealth Care Partnership we have introduced a fixed fee service for people who are wishing to make the best financial decisions to achieve their objectives. The fees are not linked to the sale of any financial products or services leaving us free to recommend any combination of solutions to achieve our clients’ personal goals.
If you would like to find out more about our services then please do call us on 0800 652 8232 or request a call by completing the ‘Request a call-back’ box below.
This article is for information purposes only and does not constitute personalised advice. Any information or opinion expressed here is solely that of the author. The Wealth Care Partnership Ltd bears no responsibility for any action taken directly unless it has engaged with you as a client and provided personalised advice.