Tuesday, January 17, 2017

3 Reasons To Work With An Independent Advisor

As I'm sure most of you subscribed to my blog and email newsletter know, I'm an independent financial advisor. What this means is that I hold no loyalty to any company in particular. I'm free to use any investment companies, funds, or investment tools that I see fit. Furthermore, what this allows me to do is go out into the financial marketplace and select the best possible investment for you, your risk tolerance and the goal(s) you're trying to achieve.

There are other advisor out there who don't have the same freedoms that I do. They work for the big banks such as; JP Morgan, Bank of America and Citi or large wire houses such as; Merrill Lynch, Fidelity and Vanguard. While there's nothing wrong with being appointed exclusively with one company I believe it to be more advantageous to have the freedom of working with all of them as well as others. That's the luxury I have by being an independent advisor instead of representing one large company.

This leads me into the 3 main reasons I believe it is to your benefit to work with an independent advisor as opposed to one appointed by a large bank or wire house.
  • Unlimited Options: Why would anyone prefer to be limited in their investment selection when working with an independent allows you to choose from anyone? Sure, these large banks and wire houses have brand recognition and a war chest of money to reach any audience via advertisements but that doesn't mean they're delivering you the best investment product. As an independent I have the ability to use funds from; Fidelity, JP Morgan, Merrill Lynch, Vanguard and others but the most important part is; I'm not limited to them and only them! I have the ability to pick and choose the cream of the crop from every company and create one master account.
  • You're More Than a Number: Lets face it, if you walk into a big bank or major wire house with less than $250K in investable assets most won't even look at you twice. They're not interested in helping the common investor plan for retirement, fund a new home purchase, or save to put their children through college. Their ultimate goal is to get you in sell you their latest product with the highest margin and send you on your way. Wells Fargo was recently exposed for behavior in line with this, opening accounts without client consent, cross-selling investors on products they didn't need, so on and so forth. All of which was done to ensure profit margins continued to rise and sales quotas were always being met. In fact, a good friend I graduated with recently left a big bank where he was instructed to go after clients with no less than $200K to invest and if someone had less than that they were told to not "waste their time" dealing with them.
  • Personal Touch: If you work with a large institution or bank and do not know your advisor personally, try reaching them outside of business hours. More often than not they'll be nowhere to be found and wouldn't take your calls even if they were. Having a much smaller client base allows myself and the advisors in my firm to get to know each and every one of our clients on a personal level. We hold client appreciation events and bring in industry experts to speak directly with clients to help clear any uncertainty they may have over a particular investment. We aim our events at specific demographics as well thus ensuring the material or activity is found interesting and has value.

In summation, my intention is not to bash or talk badly about anyone working for a large bank or wire house. It's simply my opinion that there are better alternatives out there hence the reason I chose to go the route of an independent as opposed to representing a large outfit. If I had to make the decision again I would choose to do so 10 / 10. I enjoy getting to know each and every client; their hobbies, their families, their personalities and more.

I'm giving my blog readers exclusive access to my 5 Point Financial Plan completely FREE. The concepts in this plan are one's that I utilize in every new client meeting and set the foundation for proper financial planning. It's loaded with value and not something you'll want to pass up on. Click below to get  your own PDF version!


The views expressed are not necessarily the opinion of Woodbury Financial Services. Individual circumstances vary. Investing is subject to risks including loss of principal invested.  No strategy can assure a profit against loss.

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