Independent Financial Advisor FAQs

Read our FAQs to help you choose the right independent financial advisor...

What is an independent financial advisor?

A financial advisor is a professional who renders financial services to individuals, businesses and governments.

What type of advice does an independent financial advisor provide?

Independent financial advisors may provide investment advice, including pension planning; advice on insurance such as life insurance, income protection insurance and critical illness insurance; and advice on mortgages. The main purpose of a financial adviser is to assist clients in the planning and arrangement of their financial affairs, such as savings, retirement provisions, tax treatment and wills.

How will seeing a financial advisor benefit me?

A financial adviser will help you maintain the desired balance of investment income, capital gains, and acceptable level of risk by using proper asset allocation. Financial advisers use stock, bonds, mutual funds, real estate investment trusts(REITs), options, futures, notes, and insurance products to meet the needs of their clients.

How do financial advisors charge?

Many financial advisers receive a commission payment for the various financial products that they broker. Others are fee-only advisors and are paid a set amount or fee. This is typically achieved through a combination of hourly fees (including retainers), financial planning fees, and asset management fees. Some investment advisors only charge a fee based on the assets managed for the client. Typically they charge about 1.0 to 1.5% per year to make the investment decisions for the client.