Fee-Only Financial Planning

Fees vs. Commission
The term “fee-only” financial planning is primarily used to distinguish between those financial advisers who charge a fee for their services and those who sell financial products or services on a commission basis (i.e., brokers, agents, advisors, etc.).

Types of Fees
Fee-only advisers generally use three basic fee structures:

Percentage of Assets Fee — charging a percentage of the assets under management
Hourly Rate — charging per hour of work
Flat Fee — charging a flat fee for a defined service

It is estimated that about 90% of all fee-only financial advisers use the percentage of assets fee structure for compensation.

Are All Fee-Only Planners the Same?
You might assume that all fee-only planners are alike just because they don’t “sell” financial products on a commission basis. Nothing could be further from the truth. An adviser charging percentage of assets fees may have just as many incentives to push particular products or services as a commissioned broker. This could cost you dearly. To learn more, read the following articles:
Are Your Assets Costing You Money?
Are There Conflicts In Your Portfolio?
What to Ask Before Investing

What Is Liberty’s Fee Structure?
Liberty Financial Planning charges an hourly rate or flat fee for services rendered. We have found this to be the only way to remove all conflicts of interest from the financial planning process. Our interests align with yours. Isn’t that what you expect when seeking financial advice?

Give Liberty a call today to see how we can serve you.

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