A fee-only financial advisor offers unbiased advice, transparency in costs and financial advice provided, and comprehensive financial planning.
A fee-only financial advisor serves as a fiduciary and must act in your best interest at all times. A fiduciary is required to disclose if and when there is a potential conflict of interest.
A commission-only or fee-based financial advisor is not required to serve as a fiduciary at all times. A fee-based advisor might recommend products or services to you in part because of the commission they might earn, rather than based on how well it fits into your investment strategy.
A fee-only financial advisor can create a comprehensive financial plan focusing on financial planning, retirement planning, investments, Social Security optimization, tax planning, insurance planning, estate planning, and more.
Consider working with a CERTIFIED FINANCIAL PLANNER™ to find a credentialed financial advisor. Beware of a financial advisor that tries selling products without understanding your unique financial situation.
If you require a specific need or style of financial advice, for example a high-earning household preferring to limit taxes during high-income years, make sure your financial advisor can satisfy your needs and help reach financial goals.
“Price is what you pay. Value is what you get.” -Warren Buffett
Beware of selecting a financial advisor based only on cost. There are high-cost and low-cost options for financial advice. While cost should be a consideration, consider the value of the financial advice towards your unique situation.
A benefit of working with a fee-only financial advisor is having transparency and predictability in costs for advice provided.
A commission-only and fee-based financial advisor may may have additional conflicts of interest with incentives to buy and sell financial products that are not in your best interest. A complicated fee structure should serve as a red flag.