When you have financial problems, the first step is recognizing that you need help. Then, you should know why exactly you need help. Whether you need it because of your retirement or investment plans, it’s definitely the sign for finding a financial advisor. It’s not easy because there are many out there, but first, you need to find a fee-only financial planner.
Who are fee-only financial planners?
Fee-only financial planners’ name speaks for itself. These financial advisors work for fee-only basics, which means that only you as a client, pay them the compensation for their services.
They work is devoted to their fiduciary responsibility which means that they must work in their client’s best interests. They don’t receive any fees and other forms of hidden compensations.
What are benefits of fee-only financial planners?
The best part of having hired fee-only financial planners is that you know they work representing your best interests. They are only there to help if you have any financial problems. Fee-only financial planners don’t work relying on what they sell in order to make you money. They just operate as fiduciary and guarantee that they will bring you financial benefits.
Fee-only financial advisors don’t have any connections with specific companies, so they only are there to offer you wide range of solutions to help you in achieving your goals.
Another great advantage of fee-only financial advisors is that can offer a wide range of services, without overcharging you, as they work for an hourly rate. They can help you to build up complete financial plan and you don’t need to overpay them. There are situations when fee-only advisors can take a percentage of your assets they manage, but even in this case, they’ll still work in your best interests as it will keep your assets high.
How much fee-only financial planners charge?
There are few ways they charge clients. Assets under management“ is the most common method when fee-only financial advisors take the percentage of your assets they manage.
The second method is to get the payment according to hourly or monthly rate. They are also a method of charging clients with a flat fee which means a fee as a compensation for the service they provide.
There are also financial advisors that work only with rich people. This means that they can take much more because of many assets they work with.
Dave Anderson
That is really nice that fee-based financial planners don’t work relying on what they sell to make you money. If they can help me bring in financial benefits when it comes to planning then this is something that I would love to look into. Lately, I have been struggling when it comes to budgeting and such.