Why You Should Hire a Middlesex Fee-Only Financial Planner
The first big decision is what type of Middlesex financial planner to hire. Among Certified Financial Planners (or CFPs), the industry gold standard, three types of compensation models 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 trying to push you towards an expensive sports car even though you have made it clear you need a family-friendly one that meets your budget and safety requirements. The salesman does not have your best interest at heart, and you’ll have a frustrating experience.
- 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 than getting the sale, but most of their compensation is still based on selling products, so there is still a conflict of interest. Imagine another car salesman who points you toward 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 its revenue from its 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 Middlesex Fee-Only Financial Planner
A Fee-Only CFP® is not only qualified, but they also have your best interest in mind. What exactly makes a fee-only financial planner a better option for most people than the other options? We have three major reasons choosing a Middlesex fee-only financial planner is in your best interest.
- Fewer conflicts of interest. A fee-only financial planner has no incentive to pitch options or promote funds that would benefit them more than their client. While fee-based planners can provide perfectly good service to their clients, it does open up questionable relationships between clients, planners, and investment options. You can avoid any questionable intent by working with a fee-only financial planner.
- The focus is on financial advice. Fee-only financial planners are there to provide the best financial advice, and not try to sell financial products. Providing good advice on where to put your money is good for you, which will be good for them too. It’s a win-win situation.
- Percentage-based payment options. Most fee-only financial planners will charge a percentage of the amount of money they manage. Once again, this incentivizes a fee-only financial planner to be as efficient as possible with your money, as the returns will ultimately benefit both parties. If you make money, they make money too.
Make Sure Your Financial Planner is a Fiduciary
On top of choosing a fee-only financial planner, you should also ensure they are a fiduciary. This means they must act in their client’s best interest when handling retirement investments. A financial professional who is not a fiduciary has no legal obligation to put the needs of their clients ahead of their own.
Contact a Middlesex Retirement Planner Today
If you are living in Middlesex , NJ, and are near or in retirement, it is important to hire a Middlesex Fee-Only Financial Planner you can trust. 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!