What Is a Fee Only Financial Planner?
When you want help in planning your future, you may want to consider using a fee only financial planner. Consider the options and what they offer to help you plan for the future.
What Is It?
A fee only financial planner is also known as a no commission advisor. As compared to a provider that takes a commission from selling securities, stocks, bonds or other investment products to the consumer, these professionals receive payment from clients who they are working with instead. There is a big difference to consider here. In short, you do not want your advisor to earn money from the purchases you make beyond the fee that the advisor charges you. If they do earn commission from sales, there is the risk of misuse.
For example, if you plan to invest in stocks for your portfolio, you do not want to go to an advisor who is able to get a commission from the broker selling these stocks. A less-than-professional person would encourage you to purchase from whichever stockbroker the largest commission comes from rather than taking into consideration your financial needs and abilities. You need to know this provider is working just for you and is not earning any additional income from the sales and investments you are making.
How They Are Paid
These advisors receive payment from the clients directly. Just like hiring an attorney, you will pay a fee to the advisor so that he or she can manage your investments on your behalf. The fee paid is dependent on a variety of things including the type of service you receive. In short, these professionals cannot receive compensation from a brokerage firm. They cannot receive funds from a mutual fund company. They cannot receive funds from insurance companies. The only source of funds paid to them is the payment made by the client. When getting this type of service, you are paying the advisor solely to represent you in the transactions made.
Finding a fee only financial planner is easier to do than you think. However, you still have to ensure this professional is the best one for your needs based on his or her abilities and experience. Do not put your portfolio in the hands with a fee-based or a commission-based provider. You need one that is working for you solely.
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ABOUT THE AUTHOR
The fee only financial planner Grand Rapids business owners trust can give you the projections you need. Talk to http://www.zhangfinancial.com