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So Does A Real Financial Adviser Work

The American savers are those who resort to financial advice throughout the European Union. The problem is that most do not do it by going to an independent financial adviser, but they do it through their bank, where they will not receive the advice they need but those that suit the financial institution.

So Does A Real Financial Adviser WorkHow to identify an independent financial adviser?

What differentiates a person who offers independent advice from one who does not begins with their legal form. An EAFI will provide more assurances of independent opinions than a financial adviser to the bank and the reason is in the way they work.

And if a bank advisor works with a limited range of products (bank funds, bank plans, bank shares …), the independent financial advisor handles the products of many managers. In addition, you will not ‘marry’ any, because your goal is to recommend and do your best for your savings.

The bank will offer you the seasonal product, which has advantages for the entity and which obtains a good performance via commissions. In a truly independent EAFI these hidden interests do not exist, since you will not get more money by recommending one fund or another. If you want to make sure it is, you only have to ask if it takes retrocessions or not. In Bull4All they do not.

So Does A Real Financial Adviser WorkHow an Independent Financial Adviser Works

The operation of an independent consultant begins with the first contact meeting. This meeting will help you to explain your financial objectives and so that he can draw your profile as an investor, which is defined by the risk you want to run, the time horizon of your investment and your own knowledge. Based on that you can find the investment plan that best fits your characteristics.

From there, most advisors work with different types of pre-designed wallets on which they make adaptations. In the case of Bull4All, its three profiles are: defensive, balanced and determined. Of course, each one works on a different risk profile in a different time horizon.

So Does A Real Financial Adviser WorkAnd the commissions? Does the adviser have to be paid?

Spaniards are more accustomed to paying an interior designer to advise us on how to decorate the house than to do it for financial advice and should not be so.

A good financial adviser can mark between achieving or not your economic goals and having the retirement with which you dream, for example.

In order to work, the consultant charges for his services and does so in two different ways. The first is through the fees for portfolio management, which will vary depending on the type of portfolio you choose. This commission is annual and is paid on the money you have invested.

In addition, a good advisor will also link some of your winnings to yours. In other words, it will only win if you do too. It is the success commission on benefits that varies depending on the strategy. In general, the more risky, the higher the percentage to be paid.

Never lose sight of these issues when looking for an independent financial advisor. Do not be fooled.

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