5 Advantages of Fee-Only Financial Planners
There are various types of financial planners that can help you manage your finances. There are brokers who sell you financial products such as mutual funds, stocks, bonds, and annuities. Then you have fee-only financial planners that provide assistance with implementing financial product recommendations. The difference is that a broker gains profit through the commission made from each financial product sold, rather than having your best interests in mind. A fee-only financial planner in Berkeley Lake, GA collects a yearly charge for providing answers to questions related to estate planning, retirement planning, and investment management, as well as providing professional financial advice throughout the year.
Below are five advantages to choosing a fee-only financial planner:
1. They Look at the Whole Picture
Because the purchase of any type of investment can be very confusing, you need someone that can effectively evaluate your financial position. Commission-based brokers are interested in selling you financial products rather than giving you advice. Fee-only financial planners in Berkeley Lake, GA look at your whole financial picture to create a plan of action that will provide financial security now and in the future.
2. They Usually Are Fiduciaries
Financial relationships between the consumer and financial planner are expected to be both legal and ethical. Because the typical broker is usually more interested in making a profit, he/she does not meet high enough standards to act as a fiduciary, a person entrusted with another person’s valuable assets. However, a fee-only financial planner is usually a fiduciary because he/she is not solely interested in making a profit, but rather catering to the needs that are in the best interests of its client.
3. They Usually Have Professional Affiliations
Fee-only financial planners in Berkeley Lake, GA will usually have professional affiliations like the Certified Financial Planner or the National Association of Personal Financial Advisors. The NAPFA is an organization that provides you with assurance that they do business in an ethical and professional manner. Typical brokers, however, most likely will not have such affiliations. Affiliation with the NAPFA comes from studying courses in ethics, which provides the consumer confidence in knowing that a fee-only financial planner possesses the necessary experience to provide a trustworthy relationship.
4. Gives Advice Whenever You Need It
Fee-only financial planners are paid to give the consumer advice, not to sell financial products you may or may not know anything about. Their advice and recommendations are ongoing, covering all meetings necessary throughout the year. Fee-only financial planners in Berkeley Lake, GA normally charge an annual fee, but you can rest easy knowing that their primary focus of business is a comprehensive financial plan.
5. Financial Planning Is Comprehensive
Another great advantage to using a fee-only financial planner is the total wealth management they can provide to you. They can help you with all areas of financial planning, including retirement, estate, and insurance. In addition, they have a wide range of financial areas, including education, goal-setting taxes, as well as cash management.
Commission-based brokers probably will have more interest in selling you stocks, mutual funds, and/or other financial products that you may not even understand. In other words, they are not focusing on your comprehensive financial plan, but rather on how much profit they can make. Fee-only financial planners provide recommendations while they help you navigate through the different areas of financial management.
A good financial plan is what a fee-only financial planner can provide to you. He/she is there to provide the objectives you need to achieve your financial goals, not sell you a product you know nothing about.
Contact us for any questions you may have about a fee-only financial planner in Berkeley Lake, GA.
To learn more, read our free whitepaper, “6 Failed Beliefs That Are Damaging Your Financial Well-Being, and What to Do About It“.