[Question] Having a financial adviser or not?

[xkubr]

I have a financial adviser who over the past years has sold me good policies (life cover, medical aid, retirement annuity, etc.). But do I really need a financial adviser? None of the policies he has sold me are anything special, and I could have gone directly to the particular institutions for the same policies - most (if not all) will sell policies directly to a client and do not require an intermediary. This raises the (sensitive) issue of commission\fees, which are ultimately paid for by the client and increase the cost of the policy. Are financial advisers really worth it?

Lastly: What do I need to do (if anything), if I no longer want a financial adviser?

[Phil Cooper]

Hi

Bluntly - you will gain NOTHING if you go direct to the Insurer.

They have a scale of fees debited, and, commissions or not, you pay them.

Many of the reputable Insurers will only offer you a product through an adviser - and, bluntly, I would NOT use a Direct market. They are there to sell you their product, whereas a (good) adviser will analyse your needs, and give you a product taht suits your particular circumstances, and not just what THEIR company sells!

[Blurock]

I Agree with Phil Cooper. Just make sure it is a financial adviser who can analyse and meet your needs and not just a representative from one insurance company offering only his company's products.

[Phil Cooper]

Agreed, Blurock.

A "tied" representative may give you the best product from HIS company for your needs - but that may not be THE best product for your needs!

[Nickolai Naydenov]

Agreed, Blurock.

A "tied" representative may give you the best product from HIS company for your needs - but that may not be THE best product for your needs!

And indipendent one will give you the one where he has most incentives! It's not about tied or not, it's about relationship with the client based on trust and best interest of the client.

A proper financial advisor is not a salesman and can do much more for you than you can imagine!