Why Hire a Fee Only Financial Planner?
Working with a fee only financial planner is a sound way to secure your financial future. An expert planner will consult with you to form goals and teach you how to achieve your financial aims. Finding the right financial advisor can be tricky and time-consuming. It makes no difference whether you are about to commence your working life or embrace retirement, a fee only financial advisor is the ideal person to help you plan ahead. In the first instance, let me explain the meaning of fee-only and how the best fee only financial advisor in Norcross, GA could create future wealth.
How a Trusted Fee Only Financial Planner Earns a Living
Many employed financial planners receive a large monthly commission bonus on top of their annual salary. In general, the company they work for charge exorbitant fees to cover these expenses. However, a fee only financial advisor earns money as and when he or she offers advice. Fee only financial planners charge a percentage of investments managed, an hourly rate or a monthly sum. In short, they enjoy a one to one relationship with clients and are only ever paid for the amount of work conducted.
How Commission Based Financial Advisors Earn a Wage
Financial planners who do not work on a fee-only basis are usually paid on a commission basis. For example, buy insurance, stocks or a mutual fund recommended by such an advisor and he or she will receive a commission in return. Ask your financial planner if he is a fee-only advisor. If he doesn’t give a straight answer, then he more than likely earns a commission.
Allow me to clarify a matter before moving on. Any reputable fee only financial advisor in Norcross, GA never works for a commission. Fee-only is totally different from fee-based. Fee-based advisors make money from both commissions and fees.
The Benefits of Hiring a Fee-Only Planner
We appreciate that everyone needs sound financial advice. However, it is always far cheaper to hire a reputable fee only financial advisor who only charges for work conducted.
Money has a great influence on the way we work. For instance, a company will offer great financial incentives to advisors who market certain products. This can only mean one thing. The majority of fee-based financial Planners will go all out to sell this product regardless of its worth. The financial package in question may be questionable, but the cash incentive is irresistible.
Conversely, a fee only financial advisor will offer, sound and unbiased advice. Fee only planners must draw on their knowledge to make their living. Advisors working on a fee only basis must offer objective advice to retain and to attract clients.
Fee Only Financial Advisors are Loyal
For a fee only planner, loyalty is an essential trait; after all, it is the clients who sign their paychecks. On the other hand, a fee-based financial planner is more likely to act in the company’s best interests. If they are asked to sell dubious products to earn a commission to boost their monthly salary, then their loyalty lies with the company, not the client. Fee only financial advisors must sell worthy financial products offering good financial returns. Failure to do so will result in a lean monthly paycheck.
Commission Based Advisors Sell May be Tempted to Sell Second-Rate Financial Products
A financial planner working on a commission basis is highly likely to recommend insurance products and investments that earn a commission. In addition to this, many commission-based advisors sell limited products.
However, a fee only financial advisor in Norcross, GA is a free agent. He or she can scour the market for the best and most lucrative investments. A fee only financial planner offering new products with a good return on investment earns a good wage. He has an incentive to work hard on your behalf.
On a darker note, it has been proven that many commission based investments tend not to realize great profits.
Why Do Expert Financial Planners Choose the Fee Only Route?
Many reputable and experienced fee only planners feel the fee-only route is best for all parties concerned. Those building a financial portfolio, setting up a business or just saving for the future must seek sound advice. Bear in mind that fee only planners work with their clients best interests in mind. Why? Their livelihood is dependent on it.
The Fee Only Financial Advisor vs. the Commission Based Financial Planner
Naturally, each and every one of you will have different thoughts on the subject. However, most want to enjoy a secure their financial future. Hire a reliable fee-only planner to give you the best possible financial advice.
How to Choose the Ideal Fee Only Financial Advisor in Norcross, GA
Naturally, you need to choose a financial planner who has a similar financial philosophy for yourself. At all times, you will work with the advisor to generate wealth to secure the future, so it is important to hire a friendly, knowledgeable and experienced advisor. Mid-career, some have accumulated a substantial sum of money in their 4021K plan; however, many do not know how to make investments that work in their favor. Those with a large sum of money to invest should seek financial advice from an independent planner. Financial planning is an art, so why entrust your hard earned cash to an amateur advisor?
We hope this article helps you to choose the ideal fee, only planner. A reliable advisor who will create a solid financial plan for the future.