When it comes to financial planners, there are basically two different kinds. Financial planners who charge a fee for each appointment or discussion and financial planners who don't charge a fee but take a commission or a percentage of your portfolio earnings. Here's why fee-based financial planning might be the right choice for you and your money.
Your Planner Won't Try to Push Specific Stocks our Funds
When you go to a commission-based financial planner, you can still get good advice, but they might not tell you that they get a higher commission if a new client takes a position in certain stocks or funds. When it comes to your financial future, you should get a planner that will look at your entire portfolio and make recommendations on what is best for you, and you alone.
They Give Advice Instead of Selling
Not all financial decisions are about what stock you should buy next. Sometimes you might just want to pick up the phone and get some advice on your current situation. Maybe you are looking to buy a house but want to know if your incoming annual dividends will be enough to offset the cost of home insurance. Maybe you are considering getting a second car but want a neutral opinion on how it will affect your bottom line. Fee-based financial planners can offer more than just stock or mutual fund advice. The best part, though, is that every time you call or stop by, you'll know you are getting the advice you need without having to worry about the planner's next sales pitch.
Get Retirement and Estate Planning and So Much More
Commission-based financial planners are usually focused on how their suggested stocks and funds are performing on a daily basis. But the reason many people go to at financial planner in the first place is because they have more long-term concerns. A fee-based financial planner will have no problem providing long-term retirement advice or helping you plan your retirement out once you get closer to that age. As your portfolio and estate grows, you may also want to start creating a will or some other form of estate planning. Fee-based financial planners are simply more experienced with these kinds of concerns because they are not as laser focused on watching their recommended stocks go up or down.
Reach out to a fee-based financial planning advisor today for more information.