Why pay for independent financial advice at all?
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 the highest possible, sometimes hidden, commissions. The customer pays by its signature under the contract over the entire running time clearly more money, than it becomes conscious first.
In many countries, such as the USA, Great Britain and the Scandinavian countries, fee-based consulting has long been the norm. In contrast, the sale of commission-based investment and retirement products is actually 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 remunerated directly by the client on an hourly rate basis or via flat rates.
In Germany, this form of consulting is still rare, to the detriment of customers. Advisors at financial service providers such as banks, insurance companies and brokers in this country only receive money 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 products brokered are unsuitable or too expensive.
Separation of consulting and product sales
Needs-oriented and guaranteed independent financial advice in the interests 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.
Time for a consultant to sit on your side of the table!
Time for an advisor who is on your sideaThe advisors of Honorarfinanz AG are experts in their field and, like lawyers or tax consultants, are not paid by unknown third parties. This is the only way to provide independent financial 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.e of the table sits!
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