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"fee-only Advisors Put Clients First" In Today's La Time

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Fee-only advisors put clients first

 

Dear Liz:

 

I'm a financial planner who wanted to respond to the reader who complained about the cost of engaging a fee-only advisor. This reader reminds me of my newest client, who has a net worth of $2 million and annual income over $150,000.

 

Before meeting with me, the client had invested $200,000 in a bond fund with a high expense ratio and paid a 4% commission to the securities salesperson who recommended the fund. Yet the client gasped when I quoted a $2,000 fee for a comprehensive financial plan. Writing a check for $2,000 seemed more painful to him than having $8,000 insidiously deducted from his account.

 

I think my fees are low when you consider the fee- and commission-saving advice I provide.

 

Answer:

People in the market for financial advice also should remember that those who make their living on commissions aren't generally required to put their clients' financial interests ahead of their own.

 

If you want a true fiduciary -- someone who's obligated to put you first -- the fee-only model is the way to go.

 

 

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Fee-only advisors put clients first

 

Dear Liz:

 

I'm a financial planner who wanted to respond to the reader who complained about the cost of engaging a fee-only advisor. This reader reminds me of my newest client, who has a net worth of $2 million and annual income over $150,000.

 

Before meeting with me, the client had invested $200,000 in a bond fund with a high expense ratio and paid a 4% commission to the securities salesperson who recommended the fund. Yet the client gasped when I quoted a $2,000 fee for a comprehensive financial plan. Writing a check for $2,000 seemed more painful to him than having $8,000 insidiously deducted from his account.

 

I think my fees are low when you consider the fee- and commission-saving advice I provide.

 

Answer:

People in the market for financial advice also should remember that those who make their living on commissions aren't generally required to put their clients' financial interests ahead of their own.

 

If you want a true fiduciary -- someone who's obligated to put you first -- the fee-only model is the way to go.

 

 

 

Many using this website don't make $150,000 .... And paying you 2000 would be like giving you a months salary !!

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Guru,

 

Many teachers have combined household incomes of $150,000, but that isn't the point. The analogy of the article works.

 

Most teachers I work with don't require $2,000 to do a plan. It is usually a lot less. Some people I work with will only take a couple hours.

 

ScottyD

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Guru,

 

Many teachers have combined household incomes of $150,000, but that isn't the point. The analogy of the article works.

 

Most teachers I work with don't require $2,000 to do a plan. It is usually a lot less. Some people I work with will only take a couple hours.

 

ScottyD

 

 

Thats alright ... I just live in a state with much lower paid teachers than most ... I wasn't hitting on your business ... I just don't know many teacher families that could afford that ... But I do know others who it is good for !!

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Fee-only advisors put clients first

 

Dear Liz:

 

I'm a financial planner who wanted to respond to the reader who complained about the cost of engaging a fee-only advisor. This reader reminds me of my newest client, who has a net worth of $2 million and annual income over $150,000.

 

Before meeting with me, the client had invested $200,000 in a bond fund with a high expense ratio and paid a 4% commission to the securities salesperson who recommended the fund. Yet the client gasped when I quoted a $2,000 fee for a comprehensive financial plan. Writing a check for $2,000 seemed more painful to him than having $8,000 insidiously deducted from his account.

 

I think my fees are low when you consider the fee- and commission-saving advice I provide.

 

Answer:

People in the market for financial advice also should remember that those who make their living on commissions aren't generally required to put their clients' financial interests ahead of their own.

 

If you want a true fiduciary -- someone who's obligated to put you first -- the fee-only model is the way to go.

 

 

sschullo:

 

I've been looking for a fee-only financial planner in my area. There are very few listed, it seems. Can you suggest a website which includes a bona fide list?

 

I once worked in the construction field and was often miffed by responses to a price I had quoted. I remember thinking that a television set cost more than the work I was quoting. Go figure.

 

Thanks in advance,

 

dcfas

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Here are a couple of lists:

 

http://www.socialinvest.org/directory/resu...=&keywords=

 

http://www.socialfunds.com/fs/planners.cgi

 

Not all the advisors on these lists are necessarily fee only.

 

Here is a link to the National Association of Personal Financial Advisors, an association of fee only advisors:

 

http://www.napfa.org/

 

Now for the shameless self promotion. If you're in the Bay area (northern California), I'm available.

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Here are a couple of lists:

 

http://www.socialinvest.org/directory/resu...=&keywords=

 

http://www.socialfunds.com/fs/planners.cgi

 

Not all the advisors on these lists are necessarily fee only.

 

Here is a link to the National Association of Personal Financial Advisors, an association of fee only advisors:

 

http://www.napfa.org/

 

Now for the shameless self promotion. If you're in the Bay area (northern California), I'm available.

 

 

Heheheh,

 

I'm in the Great Northeast, more recently referred to as "the ice box."

 

Thank you for the lists.

 

dcfas

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