Fee-only Financial Planner. Why Consider Fee-Only Financial Planner?
I am a fee-only financial planner. This means that my compensation is based solely on the fees charged by me and not on any commission or other form of remuneration from third parties, such as banks, insurance companies, mutual funds, etc. My clients can choose their investment advisors and use an advisor who works for them directly without paying additional commissions. In addition, they have complete control over how much money goes into each account. I do not charge transaction costs to keep your assets working hard for you!
Why Choose Us?We believe that everyone deserves access to quality financial information and tools to manage their wealth effectively. That's why we offer unbiased guidance and resources to help people build long-term savings habits at affordable prices.
You'll work one-on-one with a professional financial adviser who will take time to understand your needs and develop a customized strategy to meet those needs.
Affordable pricing: Fees start at just $99 per month, depending upon which products you select.
Unbiased Advice: All of our advisers are independent contractors who don't receive any type of referral bonus if you decide to hire us. They're paid strictly on performance.
Easy To Understand Information: We've developed easy-to-understand reports that show exactly where your money has been invested and what it earned during different periods. These reports allow you to see whether your investments were successful or not.
Online Account Management: With online accounts management software, you can view all your transactions, balances, statements, and more anytime, anywhere.
How we workFirst, we gather essential facts about your situation, including income, expenses, risk tolerance, and current holdings. Then, we create a custom asset allocation model tailored specifically to your unique circumstances using this data.
Next, we recommend specific strategies, explain how these strategies fit within your overall asset allocation and then outline the pros and cons of each option.
Our process begins when you contact us via phone or email. During this first call, we’ll ask questions like “What are your short-, medium-, and long-term goals? What types of risks do you want to avoid? How comfortable would you be taking some level of market volatility? Are there particular areas of your life that require special attention? Do you prefer to invest passively or actively?”
After gathering basic background information, we begin analyzing your situation and creating a detailed report outlining your options. The report includes recommended portfolios, allocations, and suggested levels of diversification. It also provides details on tax implications and potential conflicts of interest.
You have two choices for setting up an account with us. You can either use our website or download our free app from iTunes or Google Play Store. Both methods provide similar functionality. However, they differ in terms of ease of navigation and user experience. Our website is designed to make navigating through various sections such as portfolio recommendations, investment ideas, retirement planning calculators, etc. On the other hand, our mobile apps offer users access to their accounts 24/7 without logging into our system. You may choose whichever method works best for you.
Finally, once everything is set up, we send you a welcome letter explaining how to manage your accounts and provide instructions on getting started. This letter will include links to helpful resources and videos demonstrating how to perform specific tasks.
In addition to sending out monthly statements, we also send periodic emails reminding you of upcoming events.
Steps To Take Before Working with A Fee-Only Financial PlannerCreate An Investment Portfolio - It's essential to create an investment portfolio before starting any relationship with a fee-only financial professional. If you haven't already done so, now would be a great time to get started. Our team has created a step-by-step guide that walks you through every aspect of creating a solid investment portfolio. We recommend following along with this tutorial until you feel comfortable enough to move forward.
Set Up Automatic Monthly Contributions - After you're ready to dive into investing, we highly suggest setting up automatic monthly contributions. This ensures that you never miss out on potential gains by forgetting to contribute at least $100 each month. Plus, it helps prevent you from making costly mistakes.
Start Investing Small - When you're just getting started, it's recommended that you focus on small amounts of capital. As long as you keep things simple, you should find yourself growing more confident with investing over time.
Keep Track Of All Costs & Fees - One of the most common reasons people fail to achieve success with investing is the high costs associated with trading. Fortunately, many tools are available today that help investors track all fees and expenses related to their portfolios. For example, Robinhood offers free stock trades, no minimum balance or account opening requirements, and they even let users trade commission-free when buying shares directly from public companies.
Use Low-Cost Index Funds - While it's true that fee-only planners don't charge commissions, they do receive compensation based on performance. Therefore, it pays to shop around for the lowest cost mutual fund options.
Frequently Asked QuestionsQ1) Why should I hire a fee-only financial planner instead of hiring a full-service broker?
A1) A fee-only financial planner has no incentive to sell products or services outside his area of expertise. He does not receive commissions based on sales made by him. He receives less than half of what brokers typically earn because he doesn't charge any fees at all. As a result, he's able to focus solely on helping clients achieve their financial goals.
Q2) Can I trust my advisor if he charges me nothing?
A2) Yes! We believe that investing requires more than just good advice; it needs to be backed by sound research and solid execution. That's why we're so confident about recommending fee-only advisors who don't take advantage of their client's lack of knowledge. They know that most people aren't willing to pay them anything but still expect them to deliver superior results. So, they do whatever it takes to help their clients succeed.
Q3) How much money could I save over time working with a fee-only financial planner?
A3) There are many factors involved when determining whether someone is worth paying attention to. But one thing is clear: regardless of which type of adviser you work with, there's always room for improvement. By switching to a fee-only financial planner, you'll likely see significant savings over time. For example, according to Morningstar, investors who trade to fee-only advisers tend to outperform those who stick with commission-based ones. And since fee-only planners usually charge lower fees than traditional brokers, you might even end up saving thousands of dollars per year.
Q4) What happens after I sign up with a fee-only financial planner?
A4) Once you've signed up with a fee-only planner, you'll start receiving personalized guidance via email. Your first meeting with your new advisor will probably occur within two weeks of signing up. During this initial consultation, your advisor will review your current situation and discuss ways to improve your finances. Then, he'll set some short-term goals for you. Finally, he'll explain how he plans to reach these goals while minimizing risk. After this process, you'll both agree on a strategy that makes sense for you. You can then begin implementing your plan immediately.
Q5) Do I have to use an online platform like Wealthfront to work with a fee-only financial planning firm?
A5) No. Fee-only firms offer access to their services through phone apps, websites, mobile applications, etc. However, our team recommends using an app such as Wealthfront because it allows us to provide real-time feedback and support throughout the entire investment journey.
Q6) Is it possible to lose money working with a fee-only planner?
A6) Not! The best way to ensure that you won't lose money is to invest in low-cost index funds. These types of investments allow you to diversify across different asset classes without worrying about picking individual stocks. This means that you can rest assured knowing that your portfolio will perform well regardless of market conditions. If you follow the proper steps, you may make money during bear markets.
Bottom LineWorking with a fee-only financial planner doesn't mean that you have to sacrifice returns. On the contrary, these professionals often earn higher rates than traditional brokers because they aren't incentivized to sell products. Instead, they want to build relationships with clients who understand how critical saving money is to achieving wealth creation.