Fee Only Financial Advice

Fee only financial advice is considered the safest avenue for individual investors who want to hire an investment advisor. Fee only financial advice is offered as an alternative to commissioned salespeople who work under the guise of one kind of planner or another, for a big corporation. Actually it is questionable any professional whose job it is to sell products, while alleging that they care about your fiscal future. The fee only financial advice is offered in exchange for a consulting fee, so they work in your best interest with the highest degree of honesty and integrity.

What to Look for in Fee Only Financial Advice

Fee only financial advice can help you realize your dreams, by helping you decide how to reach your financial goals anf giving you valuable retirement financial advice. A professional can help you with everything from figuring out about buying a house, or even affording parenthood to how to pay for your kids' college education. If you have a 401k through work does it make sense for you to have a traditional or a Roth IRA? Those types of questions are great to ask when recruiting for fee only financial advice.

According to the National Association of Financial Planners, fee only financial advice is the real deal; that is, the services are offered with integrity and honesty with your best interest in mind. You will want to find out if your fee only financial advisor has worked with clients with financial needs similar to yours. You may just want to pick up the phone or chat with prospective fee only financial advisors prior to picking your fee only financial advice provider. This is to ensure that you and your prospective fee only financial advisor have a good, clear line of communication and that you see eye to eye.

In addition, you will want to make sure that they are a trustworthy individual who values giving you honest, trustworthy information. The alternative is a commissioned advisor, who will try and sell you products, such as his or her employer's annuities, long-term life insurance, etc. These products work for some and not others. But for the most part, they will involve a lifetime of investment for money you could have kept in your own hands for your whole lifetime. But, your salesperson gets a cut of the payments you make.

The decision is up to you, as your individual needs to match the unique experience that you need your professional to be able to offer. For instance, your cousin Esther may love her fee only advisor, but then again she has amassed inheritance upon inheritance. And, well, that is not your lot. Instead, maybe you are starting, closing or just in the throes of a small business, so you might choose a different individual's professional services over cousin Esther's. Either way, be sure it is fee-only in exchange for the advice you receive.

When Planning for Your Dreams, Ask Questions about the Fee

Comprehensive planning is meant to meet the full monetary planning picture for an individual's circumstances. It includes not only stocks, but other areas that make for a well-balanced money picture, when regularly tended. There are others who provide services for goal setting; budgeting; and insurance needs planning, tax planning, investment planning, planning retirements and estate planning.

It is important again to talk about their communication style, or basically how will your professional give your advice? Is it via a written document? In addition, will they provide services one time and then disappear? Or, will they be working with you on an ongoing basis, offering advice as your life changes. In addition will they make recommendations or complete one analysis upon which they base recommendations for you and your family?

Find out what credentials and degrees they possess, such as CPA (certified public accountant) or NAPFA-Registered Advisor, or Chartered Fin. Consultant (ChFC), etc. Most importantly, how will they get paid? Is it under a guise of giving advice, but really collecting a commission? Or is your planner paid Fee-Based (combination of fee-based and commission) or Fee-Offset? The one question we all probably hate to ask, but need to is about any disciplinary action from their industry. If they were, is it relevant to what advice for which you are seeking their services?

Fee only financial advice should be comprehensive in its planning, and offered with the utmost professional standards and competency. A knowledgeable advisor is key, though it is important that they are thoroughly competent, or specialize, in the areas that you need help. Advice is only good if it comes from someone with your best interest in mind. They need to be a professional with what is called fiduciary standard of practice; that is, that your best interest matters most. They practice through integrity and honesty.

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