How to Find a Fee-Only Advisor?
1. Websites and Databases:
The most reliable source to reach an advisor is to opt for reputed online sources,
- NAPFA (National Association of Personal Financial Advisors): NAPFA is one of the largest professional organizations of fee-only financial advisors that help you search for advisors directly at its website. It offers a wide range of services, including hourly as-needed services, ongoing investment and portfolio advice, and many more.
- Garrett Planning Network: This online platform helps you to reach advisors specialized in offering hourly basis financial services to clients. You can visit the website to approach the advisor for your concerns.
- CFP Board’s Directory: The CFP Board’s directory can be used to search for advisors or CFP professionals by filtering via the Fee-Only compensation model.
2. Personal Contacts:
- Family Member, Friend, or Colleague: Family Member, Friend, or Colleague are the more trustworthy and reliable source of approaching a financial advisor. It is always better to consider their personal experience in this field.
- Trusted Professionals and CPAs: You can always reach out to your known advisors and CPAs to recommend financial advisors for your situation and needs. They can be a great source of information that helps you reach your perfect advisor.
Fee-Only Certified Financial Planner (CFP): Complete Guide 2024
A Fee-Only Certified Financial Planner is a financial professional who charges fees solely for offering financial services and bits of advice regarding fund management, retirement planning, debt paydown, setting financial goals, etc. This means these professionals do not receive any commission or hidden earnings for advising any particular financial product or investment tools. Fee-Only Certified Financial Planners are often preferred in the financial world because of the transparent compensation structure and reduced potential conflicts of interest. These financial planners charge fees in a few different ways including, flat fees, fees on an hourly or monthly basis, or as a percentage of the client’s assets under management (AUM). These advisors are often registered with either the U.S. Securities and Exchange Commission (SEC) or a state-level institution.
Key Takeaways
- Fee-Only Certified Financial Planners receive compensation for their services solely through fees paid by their clients. No commission is paid for recommending a particular financial product.
- The most common method of fee computation in this field is based on the value of assets under management (AUM). This means planners charge a certain percentage of the assets they are responsible for handling as their fees.
- Fee-Only Certified Financial Planners have gained popularity in recent times because of their transparent and straightforward compensation structure.
- Fee-Only Certified Financial Planners are preferred by clients because it is free from conflicts of interest.
Table of Content
- How to Find a Fee-Only Advisor?
- How to Find a Qualified Fee-Only CFP?
- How much would a Fee-Only Financial Advisor cost?
- Advantages of Fee-Only Certified Financial Planner
- Disadvantages of Fee-Only Certified Financial Planner
- Difference between Fee-Only and Commission-Based Certified Financial Planner
- Conclusion
- Fee-Only Certified Financial Planner – FAQs
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