A financial planner or independent wealth advisor is a person who gives professional financial advice to individuals or households. The planners are independent of any financial institution, an investment firm, or bank and work exclusively for their clients. They make recommendations concerning investing, retirement plans, estate planning, pensions, and other financial issues. Usually, they charge an hourly rate and sometimes charge a commission based on the total amount of investments they recommend to their clients.
Financial planners or wealth advisers’ services can either be paid for in one lump sum or the form of a subscription. In most cases, the payment received from a wealth counselor is annual, which means that their services are available for a specific period, such as one year.
What makes a good independent financial planner?
As the economy and the housing markets are getting increasingly tight, financial planners’ job market is also drying up. The number of people qualified to work in this field is dwindling as well, and many people who do have the skills and qualifications are leaving the field because they can’t stand the pace of the industry.
The most important quality of a good financial planner is financially objective. The vast majority of financial planners are overwhelmingly focused on their own goals of how much they can make and how fast they can get there. Their goal is not in your best interest. Their goal is simply to make money and move onto the next deal.
The second quality you want in your financial advisor isn’t overly concerned with your situation. The majority of financial planners act like they care about how much money they can get to move up in the industry. They don’t give a darn if you have less-than-mediocre credit or an imperfect retirement plan. What makes a good financial planner is someone willing to look at all your financial options and provide you with the information you need to make an informed decision, not just some rosy prediction. If you find a financial planner that meets these two requirements, you’ve found someone who could be a good independent financial advisor.
How does an independent financial planner get paid?
If you are considering becoming an independent financial planner, you should ask yourself a few questions to help determine if you are suited for this type of career. For example, if you are a planner who is not independently wealthy and has to work at a certain company to make a decent living, how will you be compensated. This is another big question that can lead many people to become skeptical of the independence of financial planners who are looking to make money on their own. The truth is that compensation may come in the form of commissions on the sales of products that your customers purchase, or it can also come from fees that you get from various financial firms for working with them.
Another thing to consider if you are thinking about becoming an independent financial planner is how much experience do you have in your particular field. The more experience you have and the more varied types of clients you deal with, the more likely you will have opportunities for more work. If you only have to work with specific clients, you may only have a few clients in your career, and you will not be as well compensated.
You need to look at what you like to do, such as investing, writing, and helping others manage their finances. These are the types of things that people who are successful in this field do every day of the year. If you want to start your own business and work closely with other financial planners, you may not find the level of freedom you would like to have as part of your own boss. If you decide to go this route, though, you will find that you can earn a good living and provide for your family all on your own.
How much should you pay an independent financial planner paid?
Independent planners generally charge a fee per hour or proposal or a combination of both. Even when they are working independently, most (if not all) offer a free initial consultation. This allows you to make suggestions, ask questions, and get an idea of their work and personality before making a final employment decision. Some planners also require a payback period of at least a month after you begin using their services, in case you change your mind and want to keep using their service. Some planners charge $100 per hour, or you can find a fee-only financial planner who will charge you only the service you need.
There are several ways to find a good, reputable, independent planner; your doctor, realtor, lawyer, accountant, or investment counselor can help. You can also do an online search to find out more about the planners you are considering. Although you will pay more for a service like this, you should also consider what you’ll get out of it. Your investment plan and the advice it gives will help you achieve your goals and live comfortably. So, in the end, whether you decide to use an independent planner or pay one by the hour or by the proposal, you will be happy you made a choice.