Why You Should Hire a Burlington County Fee-Only Financial Planner

The first big decision is what type of Burlington County fee-only financial planner to hire. Among Certified Financial Planners (or CFPs), the industry gold standard, there are three types of compensation models that may affect the type of experience you have:

• A Commission-Based Financial Planner receives 100% of their compensation from commission sales. Their incentive is primarily to sell you one of their products, rather than provide sound financial advice. A simple analogy would be a car salesman at a dealership, who is trying to push you towards an expensive sports car even though you have made it clear you need a family-friendly that meets your budget and safety requirements. The salesman clearly does not have your best interest at heart, and you’ll have a frustrating experience as a result.
• A Fee-Based Financial Planner earns a small fee from their clients in addition to commission sales. This is an effort to get a planner more invested in their client’s success as opposed to getting the sale, but the majority of their compensation is still based on selling products, so there is still a conflict of interest. Imagine another car salesman who points you towards the family car you are looking for, but keeps pushing expensive features you do not want or need.
• A Fee-Only Financial Planner earns 100% of their revenue from their clients. They do not receive any commissions or compensation of any kind on the financial products they recommend. There are no conflicts of interest, and their only goal is their client’s success. In the case of the car dealership, this salesman shows you the car you need, helps you decide which features you need and which you do not, and tells you how you can get the best deal.

Benefits of Choosing a Burlington County Fee-Only Financial Planner

A Fee-Only CFP® is not only qualified, but they also have your best interest in mind. What exactly is it that makes a fee-only financial planner a better option for most people than the other options? We have three major reasons choosing a Burlington County fee-only financial planner is in your best interest.

• Fee-only financial planners are incentivized to provide unbiased advice because they receive compensation solely from their clients, and not from third-party sources, such as commissions or bonuses from investment companies. This means that fee-only financial planners have no ulterior motives to push particular investment products that may not be in the client’s best interest. By working with a fee-only financial planner, clients can have confidence that their financial planner is solely focused on providing them with the best possible financial advice.
• Many financial advisors are incentivized to promote certain investment products to clients as part of their compensation structure. However, this can result in a conflict of interest and potentially limit the range of investment options available to clients. By contrast, fee-only financial planners focus solely on providing financial advice that aligns with their client’s financial goals and objectives. This ensures that clients receive objective advice that is free from any conflicts of interest.
• Most fee-only financial planners charge a percentage of the amount of money they manage. This incentivizes fee-only financial planners to be efficient with their clients’ money, as their returns directly affect their compensation. This model aligns the interests of the financial planner and the client. If the client’s investments perform well, both parties benefit, creating a win-win situation. In contrast, other compensation models, such as commissions or flat fees, can lead to conflicts of interest or a misalignment of incentives. As a result, the percentage-based payment option offered by fee-only financial planners is attractive for clients looking for a financial planner committed to their financial success.

Make Sure Your Financial Planner is a Fiduciary

Choosing a financial planner who is both fee-only and a fiduciary is important when it comes to managing retirement investments. While fee-only financial planners have fewer conflicts of interest, ensuring that they are also a fiduciary means that they are legally obligated to act in the best interest of their clients. This ensures that clients receive objective and unbiased advice that is solely focused on their financial goals and objectives. In contrast, financial professionals who are not fiduciaries are not held to the same legal standard and may prioritize their own interests over their clients. Therefore, working with a fee-only financial planner who is also a fiduciary provides clients with an added layer of protection and peace of mind knowing that their financial interests come first.

Things to Consider When Hiring a Fiduciary Financial Advisor in Burlington County

When hiring a fiduciary financial planner in Burlington County, NJ, there are several important considerations to keep in mind:

• Fiduciary Duty: Ensure that the financial planner has a fiduciary duty to you. This means they are legally obligated to act in your best interest, not theirs. Not all financial professionals are fiduciaries, so it’s crucial to confirm this.
• Credentials and Qualifications: Check for relevant certifications such as CFP (Certified Financial Planner). These designations indicate a level of training and expertise.
• Experience: Consider the planner’s years of experience and expertise in areas relevant to your needs, such as retirement planning, tax planning, or estate planning.
• Fee Structure: Understand how the planner is compensated. Fiduciary financial planners typically operate on a fee-only structure, which means they don’t earn commissions for selling products. This can reduce conflicts of interest.
• Services Offered: Determine the range of services they provide. Some planners may only offer investment advice, while others might provide comprehensive financial planning and wealth management.
• Local Regulations and Licensing: Ensure the financial planner is licensed to operate in New Jersey and is familiar with any local regulations or opportunities specific to Burlington County.
• Client Reviews and References: Seek recommendations from trusted individuals. Online reviews, testimonials, and direct references can give insights into the planner’s reliability and professionalism.
• Compatibility: Your relationship with your financial planner will be a close one, so it’s essential to choose someone you feel comfortable with. Consider their communication style, approach to planning, and whether their values align with yours.
• Technology and Tools: Inquire about the tools and software they use. Modern financial planners often use sophisticated tools for risk assessment, portfolio management, and financial forecasting.
• Continuing Education: The financial world is continually evolving. Ensure your planner stays updated with the latest trends, tax laws, and financial products by participating in continuing education.
• Transparency: Ensure the financial planner is upfront about all fees, any potential conflicts, and their approach to financial planning.

When making your decision, take your time to interview multiple planners, ask questions, and do your research. The right fiduciary financial planner can be instrumental in helping you achieve your financial goals and secure your financial future.

Contact a Burlington County Retirement Planner Today

If you are living in Burlington County, NJ, and are near or in retirement, it is important to hire a Burlington County Certified Financial Planner you can trust. Zynergy Retirement offers virtual retirement services for our Burlington County, NJ clients. As a fee-only CFP® and fiduciary, we build successful, productive long-term relationships with our clients through unbiased, objective financial advice. Contact Zynergy Retirement Planning today to learn more!

Retirement Planning in Burlington County, NJ

Burlington County is a county in New Jersey. Mount Holly is the county seat, and Burlington is the largest in NJ by area.