Independent Fee-based Financial Planners:

are they preferable?

You may be wondering just what fee-based independent financial planners are. Let's take a look.

Imagine you are evaluating the suitability of two different financial planners. Your ultimate goal is to obtain objective advice to assist you to achieve your long-term financial goals.

Advisor # 1 represents a single financial services provider. He does not charge fees as he is paid commissions on the products he sells to clients.

Advisor # 2 represents all the reputable financial services providers in the industry and charges you a fee (disclosed and agreed beforehand) for professional advice and services rendered. Should you decide to implement the plan, and a commission is due, the fees will be rebated so that the planner does not get paid twice.

Who do you think will best serve YOUR interests?

We think it would be Financial Advisor # 2. Here’s why.

An independent financial planner is not obliged to use the products of any particular financial service provider. He can pick and choose from all the products in the industry for every situation in which a client may find himself. As a result he can provide a perfectly-tailored, holistic set of solutions to meet his client’s unique needs.

As a fee-based financial advisor he operates as a professional advisor. He has no need to ‘sell’ something in order to be remunerated. Fees are calculated and paid for based on expert advice given, just as in any other profession. Thus objectivity is guaranteed.

If you put the two together – choosing both independent and fee-based financial planners is the best possible solution for a client.

For that reason Netto Financial Services is totally independent.

We have contracts with all reputable South African assurance providers and have access to a wide range of international investment solutions.

Our recommendations are made based upon objective analysis of benefits and costs. We hold no personal shareholding in any product supplier.

Our first exploratory consultation with you is complimentary; thereafter financial planning is undertaken on a fee basis.

Consultation fees are charged per hour but are fully rebated should you make use of our full planning and implementation service.

Implementation fees are incurred in the drafting and subsequent implementation of an investment financial plan. These consist of sliding-scale fees on investments or statutory commission on insurance solutions.

Asset-based fees are calculated using a decreasing sliding scale on funds under management.

We will fully disclose all our fees and agree these with you prior to commencing any services.

Our financial planners receive an annual salary. In addition they may receive bonuses based on the delivery of service standards and are not influenced by the choice of product or supplier.