Why Paying for Financial Advice is a Smart Investment

Jun 8, 2023 | Advice, Investments, SJB Service

Why Paying for Financial Advice is a Smart Investment

As you navigate the complex world of personal finance, it’s easy to feel overwhelmed by the many options available for managing your money. One critical decision you’ll need to make is whether to seek professional financial advice and, if so, how to pay for it. At SJB Global, we believe that a fee-based model is the most transparent and client-centric way to provide financial advice.

In this article, we’ll explore the benefits of fee-only financial advice and explain why paying for professional guidance can be a smart investment in your financial future.

1: Fee-Only Advisors Offer Unbiased Advice

  • Unlike commission-based advisors, fee-only advisors do not receive compensation for selling specific products or investments. This means they have no financial incentive to steer you towards certain options and can provide unbiased advice based solely on your individual needs and goals. However, in some circumstances, commission-based products may, in fact, be more suitable and cheaper than fee-based as some commission-based products charge based on the premium value instead of the fund value and therefore could be more cost-effective.
  • Fee-only advisors can be compared to a standard that seeks to be like a fiduciary standard, which means legally required to act in your best interest. This can give you greater confidence in the advice you receive and ensure that your advisor is truly working for you, not just trying to make a sale. Transparency is key to building trust with your advisor, and fee-only advisors prioritize this in their approach.

2: Fee-Only Advice is Transparent and Cost-Effective

  • When working with a fee-only advisor, you’ll know exactly what you’re paying for and how much it will cost. There are no hidden fees or commissions to worry about, and you’ll receive a clear breakdown of the services and advice you’re receiving.
  • Fee-only advice can also be more cost-effective in the long run. While you’ll have to pay for the advisor’s time and expertise, you won’t be subject to the hidden ongoing fees and charges that can come with commission-based products which can erode returns. Over time, this can save you significant amounts of money and help you build wealth more efficiently.

3: Fee-Only Advisors Offer Comprehensive Services

  • Fee-only advisors can provide a range of services beyond just investment advice. They can help you with financial planning, tax strategies, estate planning, and more, depending on your needs and goals.
  • Because fee-only advisors are not tied to specific products or investments, they can offer a wider range of options and customize their advice to your specific situation. This can help you make more informed decisions and achieve your financial goals more effectively.

While paying for professional financial advice may seem like an additional expense, the benefits of working with a fee-only advisor can far outweigh the costs. By providing unbiased advice, transparent pricing, and comprehensive services, advisors can help you achieve your financial goals more efficiently and build long-term wealth. Whether you’re just starting out or looking to optimize your existing investments, financial advice can be a smart investment in your financial future.

This communication is for informational purposes only based on our understanding of current legislation and practices which are subject to change and are not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Schedule an Obligation-free Call With an Adviser

By scheduling an appointment with an adviser they will reach out to you at your requested time. 
Personal advice, whenever it suits you.

Schedule an Obligation-free Call With an Adviser

By scheduling an appointment with an adviser they will reach out to you at your requested time. 
Personal advice, whenever it suits you.

SJB Global