It is fair to say we are in a time when financial brokers are transitioning from offering a ‘free’ service to seeking payment from clients for their services.
This is due to many factors, including the changing commission market (whereby brokers were paid, often very well, by life companies for introducing business). As financial brokers, we are very transparent in disclosing such commission to our clients. It is true to say that commissions are falling but it is not the only factor which means brokers have to re-evaluate their charging model. We are a heavily regulated industry, with the Central Bank rightly putting the client first and foremost in ensuring their interests are at the very heart of every piece of business completed. This does however result in higher volumes of administrative, thereby leading to increasing staffing levels and often complex computer systems, the data on which needs to be ultra secure. All of which increases the cost to serve.
However most importantly Financial Advisers now undertake high levels of education to obtain the relevant financial advise qualifications.
If you find the right Financial Adviser, they may very well be well worth paying for. Of course not everyone will be worth paying for. Nor will everyone need to pay a Financial Adviser to assess and organize their affairs. Some are more than willing and able to do it themselves should they have a financial background too for example. But if by having a Financial Adviser, you become more organized and finally have that pension set up for retirement, the saver for the children’s education and the protection policies for your peace of mind, which would not otherwise have had, wouldn’t it be worth paying for that advice?
So when is it a good idea to secure the services of an Adviser?
There are many reasons to pay any professional to do a good job for you, or indeed any craftsman or tradesman with the expertise you don’t have so why should it be any different for a Financial Adviser.
Here are a few times and reasons we really need to consider securing the services of a Financial Adviser;
- I do not know where to start or how to do it myself.
There are financial needs that can be dealt with simply, for example setting up a bank account. Deciding for example that we need to plan for our retirement is not quite so simple and the services of an Adviser are definitely recommended.
- Financial information is difficult to understand and very specialised.
Like any industry, the financial services world has its own financial jargon which can be complex and difficult to understand. From terminology like equities (shares!) to AMRF’s and BOB’s (Approved Minimum Retirement Plan and Buy Out Bond respectively), not only are the words and abbreviations difficult to understand but the meaning behind them should always be clearly understood before making any decision on any of them. This only a Financial Adviser can do.
- I want something particular to my life and my life plans.
Everyone’s life is different and everyone life expectations can be different. We all need advise tailored to our current situations, salary, outgoings, dependents and ideas and aspirations for our future.
- I want to find someone who will make you do it!
Most of us have at some stage tried to lose weight. And most of us have likely been most successful when we finally decided our own will power was not strong enough and headed off to Weight Watchers/Motivation Clinic or Slimming World!
There is something about being accountable at the end of the week (when nervously climbing on that weighing scales for example!) that makes us take action.
Whilst Financial Advisers are not going to weigh you , they will make you take action by getting you to take stock of your own situation, give details of your personal and financial life and make you make the hard decisions! They can then also take the administrative headache out of organizing these same plans and contact you yearly to review same. How can this be a bad thing?
To conclude, not all Financial Advisers charge for their services, nor indeed charge for all their services. Indeed we do not charge across the board, but instead depending on the level of service and expertise our clients opt for.
But regardless it is important to really assess your need for an Adviser and once that decision is made, take it to the next level and meet with Advisers until you are satisfied they can provide exactly what you need.
If you would like to make an appointment with us please contact us at 053 9233640.
This is an opinion only and does not constitute advice as individual circumstances will determine all financial advise given.