‘Shona, what’s the difference between a financial advisor like you and somebody who works for a bank or insurance company?’, I was asked last week.
This question did not surprise me. I often encounter clients who were sold pension or life assurance products through banks or tied agents, and who wonder at the difference between all these different kinds of advisors. I don’t blame people for being confused!
In a nutshell, the difference between an independent financial advisor like me and advisors with banks or tied agents is that their advice is usually limited to one company. They can advise only on the bank’s products or the tied agent’s products. They don’t have the ability to research all market offerings and offer advice on that basis.
Still not sure what I mean by that? Don’t worry! I’ll explain it a little differently. As a financial broker, John McColgan Financial Services Ltd holds agencies with all the leading insurance companies. An agency allows me to advise on that company’s products. This means that my advice and recommendations are not restricted to a particular company; I can look at the whole market.
My goal as a financial advisor is to work with my clients to help them make a tailored financial plan and give the best possible advice according to my clients’ specific financial circumstances. Because my recommendations are based on finding the most suitable products on the market, it helps that I am not restricted to one company’s offerings.
If you are thinking of starting your financial planning journey, make sure that you do your research and seek advice from an independent financial advisor like me.
If you have already started planning your financial future and have any kind of a policy with a bank or tied agent, it would be a good idea to have a full financial review with an independent financial advisor. The reason for this is that price, features and benefits of life assurance policies are constantly changing. Independent financial advisors like me can offer best advice and nine times out of ten help you save money by offering better cover for cheaper premiums, and through proper financial planning.
With more complex products like pensions and investments, it is important to assess your attitude to risk and review the fund choices available. When you reach retirement, you will have a number of differing options when drawing on your accumulated funds. How you draw down on your accumulated pension can have differing tax implications. An independent financial advisor like me can advise on the best option allowing you to keep more of your money tax free.
I would strongly suggest that you have your circumstances reviewed by an independent advisor like me. It is important to seek independent financial advice to make sure that any advice you receive is best advice!
We are offering you the opportunity to avail of our second opinion service at no cost to you during the month of January and February.
Call Shona on 074) 9124366 to book your appointment.
Financial expert Shona Chambers, who is an employee at John McColgan Financial Services, writes a weekly column on finance for us at Donegal Daily.
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