7 Benefits of Hiring a Fee-Only Financial Planner
Did you know that half of America is worried they don’t have enough money to retire? Are you wondering if your retirement fund will adequately provide for you and your family in your golden years? Have you ever questioned how your broker gets paid and by whom?
If so, then you need to learn more about fee-only versus fee-based financial planners. And, if you’re wondering what the benefits of finding a fee-only financial planner in New Jersey, then we’ve got you covered. So keep reading to learn the seven top benefits of working with a fee-only financial planner in NJ.
1. No Conflict of Interest
The advice from a fee-only financial planner is sure to be unbiased because they don’t make their income from commissions like their broker-firm counterparts. When you work with an advisor who makes a flat rate regardless of which investment you choose, then you know that they aren’t trying to sell you more than you need or a product that isn’t right for your financial situation.
Fee-only financial planners are bound by fiduciary duty to have your best interest at heart when they give you advice. Because of this duty, they are bound to, you can rest easy knowing they aren’t just trying to sell you something because they need to meet a quota or want the commissions.
A fiduciary must act in good faith on the behalf of their clients and give them solid advice that is best for their situation. If a client feels their advisor isn’t holding up to this law they can take legal action.
If you’re unsure whether or not your advisor is a certified financial fiduciary, ask them. Ask how your advisor is paid, are they paid by the hour, a flat rate, or based on commissions. If it’s the last one, beware that they might not always give you the best advice for you, but rather the best advice based on their potential commissions.
2. They Offer More Educational Information
Financial advisors that are paid through either flat rates or hourly pay want to ensure that you come back to them. And they can do that by offering you real value in the information they give you. So, because of this, fee-only financial advisors will approach their advice from an educational background.
Additionally, many advisors find that with the flat rate fees their clients are more willing to reach out to them more often. Clients don’t have to worry about being charged an hourly rate for a short call. And they also don’t have to worry about being sold something they don’t need every time they call for advice.
Your financial advisor should focus on giving you advice and equipping you with the knowledge you need to make the right decision. They shouldn’t spend all their time trying to sell you a product or investment that isn’t right for you just because it has high commission rates.
When you’re working with an advisor that wants to give you the most and best information available you can make the best decision for your financial future. Don’t risk falling short at retirement time because you paid more in commission fees than you realized.
Do your homework and ask your advisor how they’re paid and how much they’ve made off your accounts this year. This information will give you the insight you need to make the best decision for your financial future.
3. Ability to Work on a Contract Basis or to Get a Second Opinion
If you’re at all unsure about your true financial and wealth-building situation, reach out to a second advisor and ask for their honest opinion. The great part about choosing a flat rate advisor is that they won’t ask you to sign a long-term contract before they give their opinion.
Just as fee-only financial advisors can only give you the best advice for your situation as they’re bound by law, they also want to give solid advice so you’ll come back again when you have more questions.
When you can trust your advisor to give you the best information, you’ll gladly pay their fees so you can correctly invest for your retirement. Additionally, because you only signed a contract for the one-time advice you’re aren’t committed to anything until you see the results from the information given to you.
4. You Pay Their Salary
Your financial advisor wants to find the best investments for your particular portfolio. No two retirement plans are alike and so you shouldn’t settle for cookie-cutter advice and information about funds that pay commissions if the salesman makes their quota.
Some investors who have a track record for offering stellar advice to their clients can charge very high fees. However, if they can help you increase your investments they will be worth their fees.
On the other hand, you’re not locked into a lengthy contract. If you’re unhappy with their advice then you can move on to someone else.
With a fee-only advisor, you are in control of how much you pay them and when. Don’t let lengthy contracts or commission-based fee structures keep you bound to an advisor you’re unhappy with any longer.
5. The Costs Are Set in Advance
With a fee-based advisor, you set the fees in advance. You don’t need to worry about your investment advisor taking too many commissions off the top before you ever see your investment returns.
Since the fees are established upfront, you know what to expect and when. This makes your investment much more predictable. Don’t risk your financial future by surprise commission fees that eat up your earnings year after year.
You work hard for your money and you want to make sure you’re working with someone who understands that. They also work hard for their money and great advisors have very loyal clients who gladly pay their fees for their outstanding advice.
Stop guessing how much you’re going to end up paying your financial planner. Instead, take back control by only working with a fee-only fiduciary and structure your payment schedule based on your best interests.
6. Several Different Payment Choices
You can also work with your fee-only financial planner to establish a payment structure that best fits your needs. Most planners will work with you to set up a payment approach that you feel comfortable with.
You can decide ahead of time if you want to pay by the hour, a flat rate, or a combination of a flat rate and a percentage of the investment amount. Again, the key here is that you establish the payment structure ahead of time.
There is no guesswork and no surprises when it comes time for retirement. So work with someone who also has your best interest in mind when they structure your payment schedule.
7. They Look at the Big Picture
A fee-only advisor can give you a much more comprehensive picture of your investment’s future potential. They aren’t focused solely on the few investments they want to sell you. Instead, they’re looking out for your best interests to ensure that you come back again when you see their advice pay off.
After all, your retirement years aren’t just about your investment portfolio. You also need to consider your tax requirements, estate planning, and income planning for your golden years.
When you work with a fee-only advisor they want to work with you for the long haul. They want to earn your trust so you come back again for more advice later on. This is why they can look at your retirement situation from a more holistic point of view and truly take all your specific needs into account when they give you their advice.
It’s important for you to ask the tough questions and find out how and when your financial advisor gets paid. You need to know all the sources from which your advisor is being compensated.
So, take the time to ask and do your homework so you can be sure you’re getting the best advice as required under the law.
A Fee-Only Financial Planner Can Be Very Beneficial
At the end of the day, most people want to do the right thing and give you the best advice. However, when you work with a fee-only financial planner you can rest easy at night knowing that your advisor is bound by law to put your interest ahead of theirs when they give you financial planning advice.
So, if you’re ready to talk with a certified financial planner in NJ, then reach out to us today and schedule your free 15-minute consultation. We help people like you every day to plan for their futures and offer only sound advice you can trust.
How interesting that you talk about how your financial advisor wants to find the best investments for you and how they’re paid. I want to start saving for retirement and want help with my finances. I will find a great financial advisor to help me locally.