Independent financial advisors are independent, as the name suggests. They are professionals who give unbiased opinions on financial affairs. Independent Financial Advisers will do a detailed study of their client’s financial position, preferences and objectives before giving advice on any financial matter. They will then suggest a solution to meet the client’s objectives. In other words, they work in tune with the philosophy of their clients. Independent financial advisors give solutions on matters like investment, insurance, retirement planning, mortgages and tax matters.
The premise behind employing an independent financial advisor is that he is not ‘tied’ to any financial services or products in the market. So it is unlikely that he would force you to buy certain financial products in the market and risk your money. To be precise, independent financial advisors are professionals who follow an ethical code of conduct.
The service of financial advisors can be hired by paying a fee. But most of the independent financial advisors accept a commission for their service or consultation. If the business offered is a small one, independent financial advisors may work for a fee than commission. A combination of fee and commission is also proposed in some cases when the investment or the financial service provided is quite large.
Regarding qualifications, make sure that the independent financial advisor you choose is a certified professional who has seen many market fluctuations. He should have professional qualifications and membership in professional associations. You can ask about his credentials. Also, check whether he is a CFP or CFA certified professional. Or you can check out the profile of the independent financial advisor of your choice by examining both the parts of the “Form ADV.”