I have been working as a financial advisor for 25 years. I have been an “old type” advisor, charging high commissions to reach my sales targets. Thankfully, for over half of my career I have been a “new type” advisor, working for my clients and getting paid for the work I do. While the industry is moving towards the new advisor model, there are still lots of advisors who prefer the old way. What are a few differences between the two.
Old type advisor
Super business profits
Investment of the month strategy that will change depending on when you talk to them
Differentiate themselves by claiming to able to generate higher investment returns
Varying investment strategies based on which advisor you speak to
Paid by high commissions from the life companies
Work is sales centric
Caveat Emptor
Differing advice based on who you speak to
“Free” financial review that will always find a problem
New type advisor
Reasonable business profits
Consistent investment advice
Differentiate themselves by finding out what you are trying to achieve in life and helping you structure your money so you can achieve it
Centralised investment strategies so you get the same recommendation no matter who you talk to
Paid a fee by their clients
Work is client centric
Advisor works in your best interests
The advice you get in a company is the same regardless of which advisor you speak to
You pay for a financial review. If you are doing well, you may be told “Just keep doing what you are doing”.
