What Is a Fee-Only Financial Advisor and How to Find One in Logan, UT
It can be overwhelming to look for a financial advisor. Many professionals say they provide financial planning—how do you know who is right for you? If you seek objective advice, you might consider a fee-only financial advisor. This article explains what a fee-only financial advisor is and how to find one in Logan, Utah.
What Is a Fee-Only Financial Advisor?
A fee-only financial advisor provides clients with financial planning and investment management services but does not accept commissions or any other form of compensation from third parties. This means that only the client compensates the advisor. Coupled with a fiduciary obligation that many such advisors have, the advisor minimizes any financial incentives to recommend specific products or services.
In contrast, a commissioned financial advisor is compensated by selling financial products, such as mutual funds or insurance policies. This type of advisor may be incentivized to recommend certain products over others, even if those products may not be the best fit for the client’s needs.
A third type of professional, the fee-based financial advisor, may receive both commissions and client fees.
In our view, the only fee structure that helps maintain the advisor’s objectivity and minimize conflicts of interest is fee-only compensation. That is why our wealth management firm, with offices in Lehi and Logan, UT, is fee-only. As a Registered Investment Advisor, we also have a fiduciary obligation to put our clients’ best interests ahead of our own.
How Are Fee-Only Financial Advisors Paid?
Fee-only advisors typically charge a flat fee, an hourly rate, or a percentage of assets under management (AUM) for their services. The specific fee structure may vary depending on the advisor and their services.
For example, some fee-only financial advisors may offer a la carte services, where clients can choose the specific services they want and pay for each individually.
Other firms may offer comprehensive financial planning packages that include a range of services for a flat fee.
The AUM structure is common for firms providing ongoing financial planning and investment management.
How Do You Find a Fee-Only Financial Advisor in Logan, UT?
There are several ways to find a fee-only financial advisor in Logan. One option is to search online advisor directories by organizations such as the National Association of Personal Financial Advisors (NAPFA) or the CFP Board.
Another option is to ask for referrals from friends, family, or colleagues. They may be able to provide you with the names of advisors they have had positive experiences with. You can also ask your CPA or attorney for recommendations.
It’s a good idea to research any potential advisors before committing to working with them. Check out a potential advisor’s website to help ensure the services they offer match your needs. Their website should say whether they are a fee-only advisor, but you can always ask as well. Check the website for the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA) for any disciplinary actions or complaints on their record.
Once you have a list of potential advisors, it’s a good idea to schedule a call with each one. This will allow you to get to know the advisor and ask any questions about their services and fees. It’s important to feel comfortable with the advisor you choose, as you will share personal financial information with them.
During the consultation, be sure to ask the advisor about their qualifications, experience, and approach to financial planning and investment management. You can also discuss their fees. It’s essential to understand how the advisor calculates them so you can determine if they are reasonable and whether they align with your budget.
It’s a good idea to ask the advisor about their communication style and how they will keep you informed about your financial plan and investments. You should feel comfortable reaching out to the advisor with any questions or concerns you may have, and they should be responsive and willing to answer your questions in a timely manner.
Schedule a Call with Our Fee-Only Financial Planning Firm
In summary, a fee-only financial advisor is compensated directly by clients rather than third parties. An advisor with a fiduciary obligation to clients must also put their interests first.
There are several ways to find a fee-only financial advisor, including online directories, local professional organizations, and recommendations. It’s crucial to do your research and ask questions during a consultation to find an advisor who is a good fit for your needs.
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.