The benefits of independent advice

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Posted by: Dental Design 9th August 2022

Richard T Lishman

As a dental professional, you’ll know already that the financial aspects of your life are complex. It’s not just your personal finances that you have to keep on top of, and owning a practice comes with its own share of monetary considerations that need to be addressed in order to ensure that, as a business, it remains profitable and appealing to patients.

With so many plates to balance and so many avenues to explore with your finances, who do you turn to for advice?

Two types of advice

Though titles may differ from firm to firm, effectively there are two types of financial adviser – independent and restricted. The main difference between the two is the variety of advice they can give you.

Restricted financial advisers work under the strict remit of only being able to recommend certain products, product providers or a mixture of the two. As such, they will inevitably have a great understanding of one particular area. An example of this could be a firm that is dedicated to looking at pension policies. Although restricted, they may be able to look at all of the pension policies available on the market – they just can’t offer any additional financial advice pertaining to a different topic. However, some firms may be directly tied in with a pension provider, and therefore only be able to advise people about the products available from this company, severely limiting the options available.

On the other hand, independent financial advisors (IFAs) have carte blanche to offer a range of advice and products from all providers in the market. Due to this freedom, IFAs have to prove that they have explored all the available policy/product options on the market and every supplier offering these options before making any recommendations.

Bearing these differences in mind, it’s clear that an IFA is likely to be the best option for dental professionals.

But what are the true benefits of independent advice?

An in-depth understanding of the market

As IFAs need to explore all options and providers, it’s inevitable that they will have a better understanding of your unique situation and how a diverse selection of products/policies will be able to benefit you best.

As a dentist this is invaluable, as you can find a firm that not only has a deep understanding of dentistry and the unique challenges that this profession involves, but also experts who can truly understand the finer points of your financial situation and offer holistic financial advice in response.

No bias

Independent advice, as a rule must be free from any bias. Restricted financial advisers will inevitably have bias towards certain products or policies that are within their remit to sell. As such, it’s difficult to guarantee that you are getting the best possible deal on offer, especially as they cannot take into consideration a portfolio of different solutions to cater to your needs across both personal and business matters.

IFAs will always provide a vast spectrum of possibilities, and as they receive no commission from any providers, they will truly offer the best available solutions tailored directly to you. For instance, say that you’re looking at new buildings insurance policies for your dental practice but also want to renew your home insurance at the same time. An IFA will assist and compare what’s on the market to ensure that you get the best most affordable and appropriate deal for both policies, potentially even finding solutions that will enable cheaper premiums and other perks that would not be open to a restricted adviser who is only able to explore one aspect of the situation.

Better control

The biggest benefit of independent financial advice is undoubtedly the firm control it gives you on your financial situation. Any ideas such as preparing to retire or expand your business can be considered from a multi-pronged approach, helping you to get a more comprehensive picture of what these steps will involve and any changes you need to take to guarantee that your expectations become a reality. This is a huge bonus, especially if you are considering a big change in your personal or working life and are unsure how to optimise your funds to make it a reality.

Here for all your financial needs

As a leading, award-winning firm of IFAs, money4dentists has helped dentists to achieve their financial goals and better understand their unique situations for decades. As we solely work with dentists, we have an unrivalled understanding of the industry and can always give you the best, tailored, up-to-date advice on the market.

Empower yourself with knowledge

When it comes to your finances it pays to have professionals on your side that can empower your decisions and give you unique insight to make the right decisions. By choosing independent advice, you’re giving yourself the best options available regardless of your current and future goals.