The first step to a happy financial future is to take time to figure out what your financial goals are.  The second step is to find a qualified advisor that will be able to help you reach those goals.  Although it’s possible to do it on your own, a good financial advisor can help you make an achievable plan for you to reach your goals.

To go out on your own and create your own financial plan you will need to do a lot of research and learn as much as you can about investing for the future.  It is much easier, and often much more successful, to find a professional advisor to help you.  When looking for a financial advisor you will find that some are better than others and when it comes to your financial future you need to make sure you are receiving advice from a good professional.

Many financial planners work on a commission basis, and although that isn’t always bad, it can sometimes get you a very biased opinion.  You don’t want an advisor that works more like a salesman, just trying to get the sale so he will earn a commission.  You want an advisor that will give you unbiased information and information that will benefit you.

A financial advisor that works to ‘get the sale’ will put a lot of time and effort into showing you his product or service and trying to get your signature to agree to buy their product or service.  You always need to remember that this is your financial future at stake. You need to make the decision as to whether to purchase a financial service or not based on your needs and your requirements.  If an advisor or the product he’s offering just doesn’t seem quite right to you then don’t buy.  It’s your money, it’s your future, and it’s your decision!

Some financial advisors are what are known as ‘tied’ agents and in 1986 there was a law passed called the Financial Services Act.  This law requires that all financial advisors are to notify their clients if they are an independent agent or a ‘tied’ agent.

A tied agent is an advisor that works for a specific company and they are tied to that company.  They can only recommend products or services that are offered by the company that they work for.  With this type of agent the advice that they give can be very biased as they aren’t looking at what is best for you but they are looking to promote their own products.  

A tied agent will work in your best interest to a certain degree as long as it is within their company’s product line.  So they will recommend the product that would be the most beneficial to you but they will choose the best product from their product line.

An agent that is tied to a company is not obligated to recommend the best product overall for you, only the best from what their company offers.  So if there is a product offered by another company and they know that product would suit your needs much more than their own products, they do not have to let you know that.  

People have different financial needs and goals and depending on your own situation they may not have a product that is in your best interest.  They are not obligated to tell you that though and may proceed to try and sell you a different product even though they know it isn’t really suited to your needs.

Tied agents to have benefits in that they can find some very attractive deals for you and if they do have a product that suits your needs then you can get a very good product or service through them.  You just need to keep in mind that their advice isn’t always the most biased advice you could receive.

The other type of financial advisor is an independent agent and they can sell you products or services from any company, they are not tied down to just one.  An independent agent will work for multiple companies and can search the products and services offered by each company to find the one that would benefit you most.  The biggest problem with an independent advisor is that they might also be paid on a commission basis and may often push a particular product or service because it is one that gives them a higher commission payment.

Financial advisors are certainly worth using to help you set up a plan to reach your financial goal and set up a comfortable future for you financially.  You just need to remember that you want a service or product that is going to work well for you and not one that is benefiting the advisor.  Take your time to make a decision and ask as many questions as you need to along the way.  You want to be comfortable with your decision that the finance advice you take is what you need.