As a savvy consumer, you should understand how your financial advisor gets paid. Some models aren’t as transparent as others, and it’s important to understand if there are any conflicts of interest in your relationship with a professional.
How Financial Advisors Get Paid
Some financial advisors get paid via commissions. This means they’re incentivized to sell you products — because every time you purchase something, they get a kickback. Others are called “fee-based” advisors, and they can collect flat fees and commissions on products that they sell to clients.
Both of these models leave a lot of room for conflict and it’s difficult to be sure their advice is best for you — or if it’s best for their own profitability.
Fee-only financial planners are in a better position to serve people with no conflict of interest, because they only make money for services rendered. They do not earn commissions — and they’re also held to a different standard than others in the industry.
Fee-only advisors uphold a fiduciary standard, meaning we work in the best interest of our clients at all times. Your needs come first, no matter what. (Others are held to what’s called a suitability standard, which means they only have to give advice that’s “suitable” for people — and they’re not required to give the BEST possible advice.)
Differences Between Fee-Only Financial Planners
When looking for a financial advisor, many reliable sources recommend seeking out a fee-only planner. But narrowing down your options to fee-only is the first step. There are differences to be aware of here, too.
Many advisors require asset minimums before they’ll work with you, because they operate their business with a model known as “assets under management.” This means they charge you a fee based off how much money you already have — and these minimums are usually pretty hefty.
It’s not unusual to find a financial advisor who requires you to have half a million to a million dollars in assets before they’ll take you on to help with your finances.
There’s a Better Way to Receive Financial Advice
There’s a big problem with that way of doing things. It seriously limits who you can help — and essentially says, clients should already be wealthy before they can receive advice.
We believe there’s a better way, a way that enables us to serve a variety of people in all sorts of different financial situations. We operate by charging a monthly fee for financial advice — and we don’t require you to have any assets at all before we create a comprehensive financial plan to help you reach your goals.
This makes financial planning more accessible to more people. A monthly fee means professional advice and recommendations are affordable and easy to work into your budget. You pay for things like your cell phone and gym membership on a monthly basis — so why not pay for financial planning this way?
Everyone deserves guidance from a trusted professional who can help create a plan for you, and empower you to achieve more with your money. You shouldn’t have to wait until you’re already wealthy before receiving help to figure out what to do with your finances. With Solari Financial, you don’t have to wait.
If you’re interested in learning more, get in touch and learn more about the new way of doing financial planning — a way that is accessible, affordable, and done in your best interest.