Sociium Finance
Financial Consulting
In contrast to bank advisors and financial salespeople, fee-based advisors are committed to always finding the best solution for their customers. Fee-based advisors are much more likely to act as advocates for their clients because they are free from the conflicts, restrictions and constraints that their counterparts at banks and financial providers face.
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Financial Consulting
Custody of your assets
A reputable fee-based advisor has your investments held by a custodian bank and, when investing without commission, at the same time optimizes your tax situation during your earning period with the help of a so-called insurance cover.
This is responsible for keeping your money in a separate account under your name to be held as special assets. Your fee-based advisor only has the necessary authority to manage the account for you. At the same time, you will regularly receive account statements, transaction confirmations and other information about the account directly from the depository institution.
Compensation
An independent fee-based advisor typically charges a percentage of the amount they manage for you. As the account size increases, the share usually decreases, essentially as a volume discount. Hourly rates for fee-based consulting services, monthly or annual support fees and performance-related payment are also common. In contrast to commission-dependent advisors, mostly brokers, where the costs for the customer are often hidden in compulsory information that is difficult to understand and almost always incomplete, the remuneration of a fee-based advisor is stated openly and transparently. In addition, unlike a dependent advisor, a fee-based advisor receives money exclusively from you. He does not receive any payments or commissions for the investment instruments selected for the customer, nor for the reallocation of customer assets between different investments.
Invest money safely
In contrast to bank advisors and financial salespeople, fee-based advisors are committed to always finding the best solution for their customers. Fee-based advisors are much more likely to act as advocates for their clients because they are free from the conflicts, restrictions and constraints that their counterparts at banks and financial providers face.
Fee-based advice - what makes a fee-based consultant?
Investing money for children: Be careful about maximizing commissions:
There is nothing worse than making a long-term investment decision when considering your own child or even your children, which, thanks to so-called tips on the Internet, leads to a bad decision for you. Dubious, actively managed offers with terms of sometimes 50 years or more are circulating on the Internet under the keywords “investing money 2017” or “investing money for children”. Of course, almost all of these are designed to maximize commission. Because of the long term, commissions are collected from a relatively small savings amount, which the agent or supposedly competent advisor puts into his pocket after four weeks at the latest as “earned”.
Customer base of a fee-based consultant and his fee-based advice - References - Testimonials - Customer testimonials
Ask your fee-based advisor which other customers he works with and what his ideal client looks like. Be careful if you step out of line here! It's better to fit in with the other clients.
This means you benefit from the experience of the fee-based consultant or his fee-based advice with similar cases.
Company structure of a fee-based consulting firm
Fee-based consultants are organized very differently. Some work alone, others in no offices, and a few in larger companies with several consultants and employees. Each of these configurations has advantages and disadvantages, and you must understand the structure thoroughly before granting a mandate. Range of services - Some fee-based advisors only offer asset management, others offer a whole range of services, usually including financial planning. The latter is often very useful because investment decisions should only be made after taking the customer's overall economic situation into account.
Educational qualifications of a fee-based advisor
Just like with a job applicant, you should inquire about the advisor's college and university education. It provides clues about his general intelligence, knowledge and ability to solve problems.
Experience of the fee-based consultant - in fee-based advice: Investment advisors come from a variety of professional backgrounds. You can gain further insight into experience and relative success from consulting careers. You should be careful when hiring an advisor who does not have previous experience in the financial industry or a related activity such as tax advice or auditing.
Professional qualifications of a fee-based consultant
A consultant who has completed one or more roof-related courses takes training and professionalism seriously and has at least a passable qualification in his field. Some common titles for financial professionals are the degree in business administration, specializing in banking (BA), possibly with a bachelor's degree, or the certified financial planner (CFP) and the more difficult financial analyst (CFA). Originally created in the USA, since 2005 there have also been bodies in Germany that are allowed to carry out certification. Especially in the European context, the European Financial Planning Organization certifies as a European Financial Advisor (EFA)
Sympathy and trust in fee-based advice
You will develop a close working relationship with your advisor, including important personal information about you and your family (both financial and emotional). The consultant can best fulfill his task if he knows you well. In addition to being familiar with your financial situation, he needs to know what your attitude towards money is, what dreams you have, and what goals you have for the future. Don't hire a counselor if you don't feel comfortable sharing this kind of information with them! In addition, you should check the following during preliminary discussions with candidates for the consulting role
Investment philosophy in fee-based advice: “Financial advice without commission
There are many different approaches and methods for managing investments and providing financial advice. You will have a clear sense of your preferred investment approach, and it is best to find an advisor who shares your investment philosophy and perspective on investing and markets. To do this, the candidate must of course have clear convictions and defined procedures - and be able to communicate these in an understandable manner. Otherwise you should look for someone else anyway.
