Why We Need Fee-Only Financial Advisor?

by My Finopedia Run Your Finance Smoothly

A fee-only financial advisor provides financial planning advice or consultation services and manages your personal finance. These advisors are paid on a flat-fee basis for their service and in return, they provide you with the best financial pieces of advice that enhance your investment portfolio. They work for your profit and in return charges a fee based on their expertise, market knowledge, advisory role, and dedication to managing their client’s investment profile. Hiring a fee-only financial advisor has certain benefits as there’s a requirement for a financial consulting service for personal finance or any commercial setup (companies, organizations, non-profit organizations), etc.

Need For Fee-only Financial Advisor:

You Need Financial Advice and Cannot Manage Finances Yourself:

When finances become unmanageable or you do not have an effective resource that can manage your balance sheets and investment portfolio, you need a fee-based financial advisor that handles your complete finance and reports to you frequently on the current status, and delivers you the plan of action for the future.

Transparency Between Advisor and Client:

One of the biggest advantages of having a fee-only advisor is that the entire advisory process becomes transparent between both parties. There’re no hidden fees or any extra charges from the advisor’s end as seen working on a commission basis or percentage basis.

Better Investment Opportunities and Portfolio Management:

The expertise of financial advisors is an asset for your portfolio as they are the ones who are market experts and guide you on investment management, and profitable opportunities without any conflict of interest with the client. They have the ultimate motto to make your portfolio strong to reap maximum benefit from the market.