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The Difference Between an Independent Financial Advisor and a Broker

In our previous article, we discussed 5 signs that it’s time to speak to a financial advisor but now you may be wondering what the difference between a financial advisor and a broker is.

In this article, we will look at the main differences between these two so that you can understand who you are choosing to look after your portfolio.

The Difference Between a Financial Advisor and Broker

Although both offer financial advice and support, there is still an important difference between an independent financial advisor and a broker:

Broker

Generally speaking, a broker is an individual who represents a single company or institution. This means that a broker will only offer you products that are linked to or provided by the company they are affiliated with, which are often incentivised.

Naturally, this can be quite limiting in terms of investment opportunities, savings vehicles, and insurance policies and may not be suitable for everyone.

Additionally, because investment options are limited when working with a broker, there is little chance for diversification – a crucial component of a successful financial plan.

Independent Financial Advisor

An independent financial advisor is self-employed and has access to a much wider and more diverse platform, allowing them to provide comprehensive advice over several different companies.

This means that an independent financial advisor can ensure the best possible advice is given to you without bias so that you can truly make the most out of your financial portfolio.

In addition, the most important role of an independent financial advisor is to take time to sit down with their clients so that they can get to know them and understand what their needs are. Once they know this, they can explore various options and investigate opportunities that show potential, strictly according to their client’s individual needs and personal financial situation.

Independent financial advisors aim to help their clients get a clear picture of what their goals are before developing a personalized financial plan to help them achieve those goals.

They help their clients budget, save, invest, and cut back on unnecessary spending as they work towards their bigger dreams and aspirations.

Independent financial advisors are there to form a trusting, long-term relationship with their clients, ensuring them that they have their best interests at hearts at all times. Should a client’s financial situation suddenly change, their advisor will help them navigate the change and adjust their portfolio accordingly.

Furthermore, financial advisors will assist their clients with important financial decisions, providing them with transparent and sound advice along the way.

An independent financial advisor will assist their clients with the following and more:

  • Tax assistance
  • Employee benefits
  • Medical aid products
  • Pre- and post-retirement planning
  • Risk cover
  • Offshore and local investing

Olemera – Independent Financial Advisors in Johannesburg

As independent financial advisors in Johannesburg, we are committed to helping our clients reach their financial goals, no matter how big or small they may be.

We do this by getting to know our clients and understanding what their financial situation is and finding the best products and investment opportunities for them.

We offer a wide range of financial services to clients across South Africa and we take pride in offering high quality, transparent financial advice to all.

Comments are closed for this post, but if you have spotted an error or have additional info that you think should be in this post, feel free to contact us.

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