At some point in the meeting you are going to be introduced to a product as a solution.
Could be a pension, mortgage, trust or estate planning. Perhaps even tax advice.
Everything the Financial Adviser does for you or talks about. Recommends. Leads you to the purchase of a product. The product is how the adviser is remunerated. The pension recommended to you, will have adviser fees added, perhaps even product fees that benefit the adviser.
Some of these products pay more ‘fees’ than others.
The ‘ongoing adviser fee’ is there because the adviser agrees to manage the product for you. So they get paid for recommending/setting up the product and then for the ongoing management of that product.
Many insurance based or assurance based products.
Rarely, a financial adviser will offer you a ‘fee based service’ you pay for the work done and the advice received. You create a bank transfer for that work in the same way you pay your plumber or accountant.
Let me ask, would you want your accountant to be paid by the product provider they introduce you to? What about your heart surgeon or oncologist.
So when your adviser tells you that, they are advising you, are showing you what you need to do next, what’s in your best interest. Ask them how they will be paid for that service. If you are not paying them directly, then there will be biases built in. If a product can’t manage itself then you have to ask is that really a worthy product.
Does it really mean you are getting the best thing for you?
Over here at MoneyTrainers I do things differently. I don’t sell products only skills and expertise and for that you have to pay me. In the same way your pay your solicitor or accountant.
It’s not complicated really.
Ready to get a shimmy on solving some of your long term financial questions then please get in touch. No salespeople will call, I don’t handle client money – which means I can’t run off with yours.