There are more than 218 thousand financial planners in the US. That’s a lot of options to consider.
You may be looking for financial advice or considering hiring someone to manage your investments. It’s a good idea to understand the different types of planners and what they bring to the table.
Are you looking for a financial planner to assist you with your finances? A fee-only financial planner might be the right fit for you. Here are some of the benefits of fee-only financial planning.
If you are looking for fee-only financial planning services, it’s easy to compare them if you take the time to shop around. Fee-only certified financial planners charge either a flat fee or by the hour. They might charge a percentage rate based on the value of your portfolio.
Percentage-based planners will recommend products that will help your portfolio grow, increasing the amount they receive. Commission-based financial planners might sell you products based on the commission they will receive. That’s a conflict of interest, and you can avoid that by hiring a fee-only financial planner.
They Are More Objective
Objectivity is the ability to make decisions without bias or a personal preference for one of the options presented. Financial planners have training and expertise when it comes to evaluating investment options.
Their role is to create a long-term plan to help you reach your financial goals. They may advise you on the right investments for your plan. That may include managing your investment assets.
A fee-only financial planner will evaluate potential investments with your best interests in mind. They will make unbiased decisions instead of considering the amount of money they might make if you choose specific products over other ones.
Fee-Only vs. Fee-Based Planners
There’s a distinct difference between fee-based planners and fee-only ones. If you hire a fee-only planner, they are paid directly by you, and they don’t receive any compensation from anyone else.
Fee-based planners charge fees to their clients. They also receive commissions or other incentive payments from investment funds they sell. Because they earn money to sell you products, they may not consider your life stage or risk tolerance at the same time.
A More Comprehensive Plan
Fee-only financial planners can include all aspects of your financial situation in your plan. You may be hiring them to ask about retirement planning, but they will review other areas such as your estate plan if you ask for their assistance.
Tax planning, as well as retirement income strategies, are part of their knowledge base. They may assist in the selection of assets in your investment portfolio. They can help you make the right decisions as you ease into retirement.
Try a Fee-Only Financial Planner Today
Now that you understand the benefits of using a fee-only financial planner, you can see how they might be the right fit for you. Call one today and get the help you need.
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