As a financial planner, your clients depend on you for advice and access to the best stocks and mutual funds. But what if your current set of financial products isn't quite getting the job done? Today, more and more financial planners are choosing to branch out on their own by working with independent broker-dealers. An independent broker-dealer may be able to provide you and your clients with access to additional financial products that might be a better fit for your current financial strategy. Here's how working with an independent broker-dealer as an independent financial planner can benefit you.
Going Independent Means No More Pushing Proprietary Products
If you've previously worked as a financial planner for a specific bank for a financial firm, chances are good that your company has asked you to push specific funds or investments to your clients. But in some cases, these financial vehicles might benefit your company but might not be the best choice for the customer. When you go independent as a financial planner and work directly with independent broker-dealers, you'll no longer be required to promote a financial product you don't believe in. You simply give your clients the best advice possible without worrying about your boss getting upset that you aren't hitting a quota for a certain type of investment.
You May Get a Higher Commission
It's true that going independent can free you from having to play by the rules of any one financial institution, but did you know it might also make you more money? When you sold a financial product or investment as a financial planner working for a specific firm, you likely got a decent commission, but you were also making money for your company. When you work with an independent broker-dealer when you are an independent financial advisor, all of the commission will go straight to you. This means you can now suggest the products you really believe in and will likely see higher returns for your customers while also getting paid more yourself.
More Sophisticated Funds and Products for More Sophisticated Customers
If you want to market yourself as a financial planner for the wealthy or sophisticated, you will need a set of investment options that are appealing to this group. While the basic funds you offered at your former financial firm were just fine for the everyday person, they might not be the best solution for a high-end investor. When you work with an independent broker-dealer, you can come up with a fund that has everything you want in it and nothing that you don't. You can create products designed to attract more sophisticated customers and the extra money that comes with them