What Is a Fee-Only Financial Advisor, and Where Can I Find One in Lehi, UT?
When you ask a friend for advice, you probably assume their advice is intended to help you. The same goes for the professionals in your life, such as your doctor or attorney. Their advice should be about you, not them.
You might assume that a financial professional will put you first as well. Unfortunately, that’s not always the case. This article covers why some financial professionals won’t always put your interests first and the importance of hiring a fee-only financial advisor. We’ll also cover how residents of Lehi, Utah, can find one.
What’s Standing Between Financial Professionals and Your Best Interest
In a word: money. Some financial professionals get paid by their employers for selling you certain products.
Say you purchased a mutual fund based on your broker’s advice. The mutual fund may be “suitable” for your needs, but suitable doesn’t mean it was the best fund for you. Perhaps its fees and expenses are high and will cut into your portfolio returns.
You never learned about other mutual funds with fewer costs because the financial professional wasn’t obliged to tell you. Meanwhile, they received a commission for your purchase.
That’s a conflict of interest that the financial services industry needs to eliminate—but hasn’t. Just like doctors and attorneys, financial professionals should put clients first.
Fortunately, some do.
The Financial Advisors Who Put Clients First
When you vet financial professionals, you can look for certain qualities that help assure you they offer advice that puts you first:
Independent: The financial planning firm or financial advisor is not part of a national company like a bank.
Fiduciary: The firm or advisor must put your best interest first, even ahead of the advisor’s interests. A firm that is a Registered Investment Advisor (RIA) has a fiduciary duty. You can also look for specific credentials, such as the CERTIFIED FINANCIAL PLANNER™ (CFP®) designation. The CFP Board requires advisors with the CFP® mark to act as fiduciaries to clients.
You can also look at how the advisor is paid. Do they receive commissions or other compensation from a third party? Or are they paid by clients only? Client-compensated firms are called fee-only financial advisors.
Our firm, which has an office in Lehi, UT, is a fee-only wealth management firm because we believe it is the only fee structure that helps eliminate conflicts. It aligns our interests with our clients’ interests.
You worked hard to create your financial security. You should have someone you trust to help strengthen and expand on that security.
How to Find a Fee-Only Financial Advisor in Lehi, UT
You can start by asking for recommendations for top financial advisors in Lehi from family members, friends, and colleagues. You can also use a search engine like Google to look for local results, such as “fee-only financial advisor Lehi UT.”
You can also search for CFP® professionals on the CFP Board’s search site, letsmakeaplan.org. You can search by location, the advisor’s last name, or the services you seek.
Once you have a few potential advisors, check out their websites. You want to understand whether their services—such as retirement planning, investment management, or tax planning—align with your needs. You can also look for the keywords mentioned here, such as fee-only, fiduciary, independent, CFP®, and Registered Investment Advisor.
Finally, schedule a complimentary phone call with the advisor you are considering. These calls can provide an opportunity to determine if the advisor will be a fit for you before proceeding. You can ask any questions you’re unclear about, such as their fee-only status.
Do Your Homework
Finding the right financial advisor requires some essential legwork. Since not every financial professional is required to advise in your best interest, it’s important you make sure the financial planner you are considering will. You can help ensure this by seeking a fee-only financial advisor. You can also check to make sure they are independent and fiduciaries.
Schedule a complimentary, 15-minute call with an independent, fee-only, fiduciary financial advisor today to discuss your personal situation.
This material was prepared 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.