Why You Should Hire a Union County Fee-Only Financial Planner
The first big decision is what type of Union County 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 Union 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 Union 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 wealth manager 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.
Contact a Virtual Union County Retirement Planner Today
If you are living in Union County, NJ, and are near or in retirement, it is important to hire a Union County Fee-Only Financial Planner you can trust. Zynergy Retirement offers virtual fee-only financial planning services to our Union 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 Union County, NJ
When considering retiring in Union County, NJ, it’s important to take various factors into account to ensure a comfortable and fulfilling retirement. Here are some key considerations:
1. Cost of Living
- Housing Costs: Investigate the cost of homes or rental properties in Union County. Prices can vary significantly depending on the town and proximity to amenities.
- Property Taxes: New Jersey is known for high property taxes, so it’s essential to understand the tax implications for the specific area you are considering.
- General Expenses: Consider the overall cost of living, including groceries, utilities, healthcare, and other day-to-day expenses.
2. Healthcare Facilities
- Access to Healthcare: Union County has several healthcare facilities, including hospitals, clinics, and specialized medical centers. Ensure that there are adequate healthcare services nearby, especially if you have specific medical needs.
- Quality of Care: Research the quality of local healthcare providers and hospitals to ensure they meet your standards.
3. Climate and Weather
- Seasonal Changes: Union County experiences four distinct seasons. Consider whether you are comfortable with cold winters and hot summers.
- Severe Weather: Be aware of potential for extreme weather events, such as snowstorms in the winter.
4. Recreational Activities
- Parks and Recreation: Explore the availability of parks, recreational facilities, and outdoor activities. Union County has a variety of parks, golf courses, and other recreational options.
- Cultural and Social Activities: Check for local community centers, senior centers, and cultural activities that can keep you engaged and active.
5. Proximity to Family and Friends
- Location: Consider how close you will be to family and friends. Proximity can play a significant role in your overall happiness and support system.
6. Transportation
- Public Transportation: Union County is well-connected by public transportation, including NJ Transit trains and buses. Consider your transportation needs and the availability of public transit options.
- Accessibility: Evaluate the ease of getting around, including walkability and access to major highways.
7. Safety and Security
- Crime Rates: Research the crime rates in the areas you are considering. Union County includes a mix of urban and suburban environments, so safety can vary by town.
- Community Policing: Look into the presence and effectiveness of local law enforcement and community policing efforts.
8. Community and Lifestyle
- Neighborhood Atmosphere: Visit potential neighborhoods to get a feel for the community atmosphere. Some areas may have a more active senior community, while others may be quieter and more residential.
- Local Services: Check the availability of services that are important to you, such as libraries, fitness centers, and shopping centers.
9. Financial Planning
- Taxes and Retirement Income: Consider the tax implications for retirees in New Jersey, including state income tax on retirement income, sales tax, and property taxes.
- Cost of Living Adjustments: Ensure your retirement income will be sufficient to cover the cost of living in Union County, taking into account potential increases in expenses over time.
10. Retirement Communities
- Active Adult Communities: Union County has several 55+ communities that offer amenities and social activities geared toward retirees. Explore these options to see if they meet your needs and preferences.
By carefully considering these factors, you can make an informed decision about retiring in Union County, NJ, and find a community that suits your lifestyle and needs.
We’ve worked with retirement planning clients throughout Union County NJ, including:
- Berkeley Heights
- Clark
- Cranford
- Fanwood
- Garwood
- Kenilworth
- Linden
- Mountainside
- New Providence
- Plainfield
- Rahway
- Roselle Park
- Scotch Plains
- Springfield
- Summit
- Union
- Vauxhall
- Westfield
- Winfield
- Woodbridge
Contact Zynergy Retirement Planning today to discuss how a Union County Fee-Only Financial Planner can help you plan your ideal retirement.