Fee-Only Financial Planner—Everything You Need To Know

If you’re in need of being on top of your finances such that you would be able to achieve a financial goal in the future, you may benefit from the help of a financial planner!

A financial planner evaluates your current financial situation as well as your goal, and makes plans to bridge the gap between your current situation and goal. They advise you regarding investments to try, they give you plans for savings, and accounts that you should be keeping your money in to get maximum benefits.

There are two ways a planner may take their compensation for the job: they may go a fee-only route, or opt for fee and commissions.

Let’s talk about the differences between these two and the benefits of a fee-only planner.

Differences Between A Fee-Only And Fee-Plus-Commission-Based Planner

 

A fee-only financial planner is exactly what it sounds: these planners get compensated solely from the fees their clients offer them for their services.

On the other hand, a fee-plus-commission-based financial planner takes both the fees from their clients as well as commissions off of the products and services they recommend their clients from a third party.

Fee-only planners won’t get any commissions, kickbacks, referral fees from any third party for their services. This payment structure reduces the chances of these planners having any conflict of interest with their clients. In fact, these planners fulfill their duty of acting as a fiduciary for their clients, i.e. act in the best interest of their clients.

Benefits Of Working With A Fee-Only Planner

The most important benefit that comes from working with a fee-only financial planner is that they serve while keeping your best interest in mind. They don’t recommend products or services that may improve their bottom line, but those that would truly help you with your finances.

Moreover, you get peace of mind while working with a fee-only financial planner. You would always know that whatever they are advising you is in your best interest and not because it helps them earn more. Therefore, you would always be at peace knowing that your planner’s advice is going to give you maximum benefits.

Furthermore, a fee-only planner may also offer you an objective second opinion on your financial situation. This is mostly true for financial planners who work on hourly basis or as-needed basis.

Wrapping Up

In this article, we discussed the differences between a fee-only financial planner and a fee-plus-commission-based planner. Moreover, we also discussed the benefits of working with a fee-only planner.

If you’d like to hire a fee-onlyfinancial planner in Los Angeles, we highly recommend you get in touch with Otium AG. They offer great financial planning in West Los Angeles, and is a reputable brand to work with.


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