Understanding the Role of a Fee-Only Financial Advisor in Lehi, UT
If you need financial planning or investment advice, it’s important to understand the types of advisors and how they are compensated, as this can impact the advice you receive. One type of financial advisor is a fee-only financial advisor. This professional provides financial planning and investment advice to clients in exchange for a fee rather than earning commissions from selling financial products.
Our wealth management firm in Lehi, UT, is a fee-only financial advisory firm because we believe it is the only fee structure that puts our clients’ interests first.
Read this article to learn more about fee-only advice compared with other fee types, as well as how to find a fee-only financial planner in Lehi, Utah.
What Is a Fee-Only Financial Advisor?
A fee-only financial advisor is a professional who provides financial planning and investment advice in exchange for a fee paid by the client. This fee can be a flat rate, an hourly rate, or a percentage of the assets being managed.
A fee-only financial advisor does not receive any commissions or kickbacks from financial institutions for selling products, such as mutual funds or insurance policies. This means that the advisor’s only source of income is the fee paid by the client.
The main advantage of working with a fee-only financial advisor is that potential conflicts of interest are reduced, as the professional is not motivated to sell financial products to earn additional income.
This generally means the client can expect more unbiased financial advice. The financial advisor’s goal is to provide the client with the best financial planning and investment advice rather than trying to sell them specific products.
Other Types of Financial Advisors
In addition to fee-only financial advisors, there are other types of financial advisors, including commission-based and fee-based financial advisors.
Commission-based financial advisors are paid commissions for selling financial products, such as mutual funds or insurance policies. This means that their income depends on the financial products they sell rather than being paid directly by the client.
Commission-based financial advisors may have a conflict of interest, as they may be motivated to sell certain financial products to earn additional income.
Fee-based financial advisors are similar to fee-only financial advisors in that clients pay them a fee for their financial planning and investment advice. However, they may also earn commissions or other forms of compensation for selling financial products.
This means that their income is not solely dependent on the fee paid by the client. They may have a conflict of interest if they are motivated to sell certain financial products to earn additional income.
Understanding a potential advisor’s fee structure and compensation is essential before working with them to help ensure you are aware of any potential conflicts of interest.
How to Find a Fee-Only Financial Advisor in Lehi, UT
If you are looking for a fee-only financial advisor in Lehi, UT, you can start your search in a few different ways. One option is to ask for recommendations from friends, family, or colleagues who have worked with fee-only planners.
You can also search online directories or websites, such as the National Association of Personal Financial Advisors (NAPFA), which has a directory of fee-only financial advisors.
When searching for a financial advisor, it’s important to consider their qualifications, experience, and services, as well as their fee structure. You want to check their background and any disciplinary actions taken against them, which can generally be found through the U.S. Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA).
In addition to these considerations, it’s a good idea to meet with a few financial advisors before deciding. This will allow you to get a sense of their personality and approach to financial planning and determine whether they are a good fit for your needs.
It’s important to feel comfortable and confident in your financial advisor, as you will be sharing personal financial information with them and relying on their advice to make important financial decisions.
Schedule a Call
Overall, it’s important to carefully consider the type of financial advisor you choose. Working with a fee-only financial advisor in Lehi, UT, can help you receive objective financial and investment advice without the potential conflicts of interest present with other professionals.
Our fiduciary, fee-only financial firm offers a 15-minute call to discuss your concerns and situation. Schedule a call today.
This material was generated using artificial intelligence and edited by Kaleido Inc. from information derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.
Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor with offices in Roseville and Folsom, CA, and Lehi and Logan, UT. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country’s leading professional association of fee-only financial advisors.