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Fee Only Financial Planner

A fee only financial planner makes their money strictly off fees and not commissions when executing an investment transaction on your behalf. This means that they are not going to make a commission off of you when they sell shares out of your IRA. They are fee only, so that means they are going to make a steady income no matter what they do for you.

And as with anything, there are pros and cons to using a fee only financial planner. It is good that you evaluate the pros and cons so that you know what to expect. It is good to eliminate surprises, but to know how it is a fee based financial planner can serve you on a fee only basis.


First of all, it is federal law that a financial planner act in a way that is in the best interest of his or her client. This means finding the best investment opportunities for the best possible price. Customers should never have to pay more than what they are supposed to. If they do, the fee only financial planner may be in violation of the law.

A financial planner operating on a fee only basis can also offer you more services. For instance, parenthood brings about expenses. Many individuals are not sure how to manage these expenses, so they turn to a fee only financial planner. The end result is being able to save for the child's education so that there is money available to pay college tuition. Although there are grants and loans available to students, as well as scholarships, there are expenses no matter what. And saving for college can reduce the amount of loans that can take a child many years to pay back after graduating high school.

It is also important to have financial assistance in buying a home. Being fully prepared for this very important step means being able to avoid high interest rates and can even mean having a shorter term loan. You could pay what would normally be a 30 year mortgage off in 20 with a solid plan put in place by a financial planner. Because they are fee only, they are giving you many services that you can use in all areas of your life.

Basically, the fee only financial planner has no stake in the advice that they provide you. Because they have no stake in the advice, they are not making moves that benefit them financially. If they did, they wouldn't be benefitted in any way, so it would be fruitless. The advice that they offer you is to help you and no one else. There are no conflicts of interest regarding how the fee only planner is paid.

This also means no trying to sell you products that you don't need. If a fee only financial planner tried to sell you products you don't need, there is nothing there that will be to their advantage. They don't benefit from such a move. This is why a fee only planner is the only way many people will go.


The main con of a fee only financial planner and, the one of concern to many, is that the charge is one that happens no matter what. When someone works off of commissions, they take a cut of an action that they took. In other words, they get paid if they make a sale of a share. This may work for those who are strictly investing, but it is not going to work so well for those who need real investment planning or who need reliable retirement planners to help them out.

In other words, you need a fee only financial planner to help you in your overall financial planning. You can also expect the charge to be one that is based upon how many services you are using. This means it is going to vary. You can, however, review those charges before taking action and can then choose what areas are most important to you when managing your finances.

You will want to request a schedule of the fees first. For instance, if you want to manage your 401k or your Roth IRA, you want to know what it is going to cost you. The same goes for any retirement planning that you need performed for you. There are many services to choose from to make sure you secure the best future you can secure for yourself and for your family.

So now that you know what a fee only financial planner is, as well as the pros and the cons, you can make a determination as to what types of services you would like. That way you can prepare and make a bright future for you and your family. This means reaching all of the goals that you want to reach.

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