You often hear the term “independent” thrown around in financial settings – but what does it mean in practice and of what value is it to you? Independent financial advisors have three clear advantages which will help you reach your financial goals.
- It all starts with you, not the product
An independent advisor’s main goal is to help you as a client reach your goals. Hence, it makes little sense to launch into a long-drawn-out sales pitch about what products are offered. Rather, the main focus will always be you. At Lyra, we never start a consultation without asking you what you want to achieve in your life and why that is important for you. Once we have this information, we can find the best solutions tailored for your specific needs.
- The entire market at your disposal – finding what suits you
Independent advisors’ recommendations are never restricted to a specific line of products, and they are never driven by any external incentives to promote products that aren’t suited for you. The only limit is the range of products currently available on the market.
However, exactly how advisors go about in selecting the best product will differ from firm to the firm. As a member of GAIA, we only select products championed by scientific research which we trust will be optimal for our clients. It almost goes without saying then that in order to remain impartial, we do not offer any financial products of our own.
- Say farewell to hidden costs
Traditionally within finance there have always been all sorts of hidden fees or costs. For example, kickbacks and commissions which can be difficult to notice from the sidelines as a customer. This can be devastating for customers since such unexpected costs can significantly affect the eventual yield of your investments. And so, it’s in your interest to keep these costs down. This is where independent advice and companies like the GAIA members step in. Our revenue model is thankfully different – we are completely transparent with our charges and simply charge a fee for our knowledge.
The takeaway from all of this is that independent advice is about advisors putting your interests as a customer first, rather than their company’s or their own priorities first. We’re hard pressed to say whether there’s anyone who would even want an advisor who isn’t independent. At least, we weren’t too keen on it.