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The added value of choosing an independent financial advisor

The increasingly complex, ever-changing financial landscape with a wide range of solutions to protect and grow wealth has led to a growing demand from high net worth individuals and UHNWIs (Ultra High Net Worth Individuals) for support from independent financial advisors. These professionals, operating outside of traditional financial institutions, offer personalized service in open architecture, aiming to maximize results for their clients in the area of planning, managing and administering their clients’ wealth.

According to a British study by the International Longevity Center (ILC), financial advice can earn people, on average, nearly 48,000 pounds in pensions and financial assets compared to those who do not use advice.

 

Independent financial advisor: what does he or she do?

The work of the independent financial advisor revolves around the proper financial planning of the client’s assets, operating independently from financial institutions or insurance companies, ensuring objective analysis free from conflicts of interest. His or her main role is to understand the client’s financial needs and goals, devising a customized strategy to achieve them.

The activities of an independent financial advisor include:

  • Financial analysis, i.e., assessing the client’s wealth and income situation, the weights of each asset class, and portfolio volatility
  • Financial planning, including setting short- and long-term goals and developing an action plan to achieve them
  • Investment advice/monitoring with a consolidated report of the client’s different positions in different lending institutions
  • Tax planning and tax optimization to reduce the fiscal impact on assets
  • Estate planning and assistance in the preparation of wills to ensure a smooth transition of assets to future generations or the use of Luxembourg life insurance as an inheritance tool

Why rely on an independent financial advisor?

Relying on an independent financial advisor offers a number of significant advantages. For starters, there is impartiality: these professionals are not tied to any specific financial institution or product, allowing them to provide objective and personalized advice. Their expertise with an international approach is equally valuable: they possess in-depth knowledge of financial markets and investment products, ensuring accurate and professional analysis.

Advisors offer a comprehensive view of the client’s wealth situation, providing assistance in various areas, such as tax planning, estate planning, and retirement planning. They also remain available over time, providing ongoing support to monitor investments, adapt strategy to changing market conditions, and respond to clients’ questions or concerns.

Selecting an independent financial advisor requires careful evaluation of several factors. It is essential to know the advisor’s financial industry experience and professional credentials. It is equally important to understand his or her working methodology, including the criteria used to calculate fees. Finally, it is essential to feel comfortable discussing one’s finances and to trust the selected advisor with an offering that always includes international solutions.

Conclusions

In Italy, the increasing complexity of financial markets and the climate of economic uncertainty has made financial advice an essential service for individuals and families. Relevant data clearly demonstrate the tangible benefits of working with an independent financial advisor. Investors who have used advice have achieved 11 percent higher returns, as evidenced by the aforementioned study by the International Longevity Center. A recent Morningstar analysis also confirmed that funds managed by independent advisors outperformed over the long term.

Comprehensive financial planning offered by an independent advisor encompasses a wide range of aspects, from investing to saving, from taxes to succession. This holistic approach makes it possible to define personalized goals and develop targeted plans to achieve them, thus reducing financial stress. The ability to access exclusive products and services, selected according to the individual’s risk profile and goals, is another added value of financial advice.

Financial advice improves the client’s financial awareness, promoting greater autonomy in decision-making. Choosing the right advisor is a key step in ensuring a secure and prosperous financial future.

Looking for an independent financial advisor? Please feel free to contact me and tell me about your plans!