Why choose a fee only Financial Planner or Investment Advisor
Fee-only financial planners are certified investment advisors with a fiduciary responsibility to act in their clients' best interest. They do not accept any fees or compensation based on product sales. Fee-only advisors have fewer inherent conflicts of interest, and they generally provide more comprehensive advice.
There is a general notion, that financial advice should be free. But this isn’t correct.
If you are taking advice from a Fee-Only Financial Advisor that means you will be paying them for getting financial advice. Just like a patient goes to a doctor and pays a fee. Since fee-only adviser is being paid only by the client, he will work only for the client.
This Financial Advisor will not be affiliated with any organization, mutual funds AMC, insurance companies. There will be no hidden commissions or sales incentives to influence the advisor’s investment recommendations. And that is something really worth paying for – getting proper and conflict-free financial advice.
The major benefit of taking advice from fee-only investment advisor is that, they do not sell financial products like mutual funds or stocks or insurance themselves. Instead, they provide recommendations via a well-researched, solid financial plan and guide you to implement it yourself.
Brokers, agents and commission-based advisors sell you random products don’t really care about your financial future. Those who work on commission-basis will never be focused on your comprehensive financial plan but instead will be looking for ways to sell you products which give them a commission.
If you think about it clearly, then you too will agree that a person selling product and earning a commission from it can never be a true financial advisor. He is just a product seller as his interest lies in selling product and earning more commissions. Think about it for a moment and you too will realize it.
On the other hand, a fee-only financial planner will go much beyond just the selection of investment products and their returns. He will give you the right advice you need for saving for your financial goals, retirement planning and having proper insurances in place. They will evaluate your current financial position and create a plan of action for methodically achieving your financial goals. They help make the right money decisions each time and help you avoid making financial mistakes.
Remember, at the end of the day, it is only about reaching your financial goals, dreams and aspirations. And choosing the right financial advisor can make a world of difference in your investments and how you control your financial life.