Why You Should Hire a Ocean County Fee-Only Financial Planner
The first big decision is what type of Ocean County financial planner to hire. Among Certified Financial Planners (or CFPs), the industry gold standard, there are three types of compensation models which 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 the 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 Ocean 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 an Ocean 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 wealth management. 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.
Contact an Ocean County Retirement Planner Today
If you are living in Ocean County, NJ, and are near or in retirement, it is important to hire a Ocean County 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!
Retirement Planning in Ocean County, NJ
Ocean County, NJ is a perfect place to plan your retirement, with beautiful beaches, shore towns with popular boardwalks and exciting night life, numerous county parks, and a convenient commute to New York City.
We’ve worked with retirement planning clients throughout Ocean County NJ, including:
- Barnegat Township
- Beach Haven
- Island Heights
- Lanoka Harbor
- Little Egg Harbor
- Point Pleasant
- Seaside Heights
- Seaside Park
- Ship Bottom
- Toms River
Contact Zynergy Retirement Planning today to discuss how an Ocean County Fee-Only Financial Planner can help you plan your ideal retirement.