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Why your old financial adviser may need to wear handcuffs.

Many advisers are not providing their clients with "independent" or "unbiased" advice, and many advisers are not even telling the truth about this...

Rainmaker Research claims of the 16,000 financial planners in Australia,  over two-thirds are aligned with only one provider.

Rainmaker says that this figure could be "as high as 80% of financial planners" who are working for "The Big 30" companies and not truly working for YOU and your interests.

This "Big 30" includes banks such as Westpac (BT, St George), Commonwealth (Colonial), ANZ (Asgard, Esanda) and National Bank (MLC). Also high on the list are financial providers such as AMP, ING (RetireInvest), PIS (Mentor) and AXA (Charter).

Some advisers may even claim to be independent, but still not provide independent advice, according to Rainmaker's Alex Dunnin.

"When a financial planner says they're independent it might be because they're an independent franchisee... (but)  they're an independent small business who is part of a bigger corporate network," he said. Confused? You may be. Cranky? You could be.

In the book "Who's Taking Your Money?", Jeremy Britton and the IMP team expose which companies are behind which other companies and suggest that clients seek an adviser who is unbiased.

You can download a complimentary report from our website called "Fifteen Questions to ask your financial planner". Availabe here.

The most important question to ask a financial adviser may just be "Who do you work for?" If the adviser says "XYZ corporation" then they may not be really independent. Their hands are possibly "tied" (or cuffed!), as they must recommend solutions or products from that company and none other.

If they say "I work for YOU", then you will be on the right track for a better deal. An adviser who can source products or solutions from multiple providers, one who is "untied", one who works for YOU, is more likely to have your best interests at heart.

For more information, or to discuss your specific situation, please contact me directly.

Jeremy Britton
24HourWealthCoach

Now that you have read this, what do you think?  Do you have other ideas?  Please share you views with other members (eg by blog or discussion form) and/or request professional member(s) to contact you directly.

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