Most financial service providers offer “free advice” – as a service, so to speak. In doing so, they like to recommend products with which they can collect handsome fees and as high as possible, sometimes hidden commissions.
By signing the contract, the customer pays significantly more money over the entire term than he or she initially realizes.
In many countries such as the USA, Great Britain and the Scandinavian countries, fee-based consulting has long been the norm.
The sale of commission-based investment and pension products, on the other hand, is even prohibited there. Financial experts there give independent advice, for example, on private retirement planning, and then recommend a financial product that is suitable for you as a consumer.
The advisor is paid directly by the client on an hourly rate basis or via flat rates.
In Germany, this form of finacial consulting is still rare, to the detriment of the client. Consultants at financial service providers such as banks, insurance companies and brokers in this country are only paid for brokering products. The advice is apparently free of charge.
But who looks closely, discovers a high intransparency when it comes to the costs. Investors almost always miss their savings targets because the brokered products are unsuitable or too expensive.
Independent and optimal financial advice in the interest of the consumer can only be provided if the components of advice and product sales are separated. This separation enables a new dimension of consulting quality for the individual consumer, but also for the (fee-based) consultant. Therefore, find out more about the business model of your personal financial advisor.
The advisors of Honorarfinanz AG are experts in your field and, like lawyers or tax advisors, are not paid by unknown third parties. This is the only way to provide independent advice in the best interest of our clients. By using commission-free investment products and insurance rates, a large part of the total costs can be saved.
For you, this means achieving your financial goals!