Us versus Them

When you take financial advice, you can pay a separate fee or elect to have the product pay a commission to your adviser. You are often told that where there is a commission it is FREE advice, which is understandably enticing. In comparison, a fee appears to be a direct cost. However, opting for commission-based products often means that costs are not fully disclosed to you, which can end up damaging your returns. Furthermore, the adviser is often encouraged to recommend the product with the largest commission rather than what is best for you.

That is why we would always recommend seeking fee-based services, where the adviser can fully disclose their fees in a transparent manner up front before carrying out any work. That way, you know what you are paying for, and can rest easy in the knowledge that you are receiving truly independent advice on what is best for you, instead of what is best for the adviser.

Don’t be afraid to ask questions of any company you approach for financial advice – a reputable, independent adviser should have no trouble answering your concerns. If a firm cannot give you a straight answer, that should set alarm bells off.