VIDEO: Why You Should Work With a CFP® Professional

VIDEO: Why You Should Work With a CFP® Professional

By Joe Dowdall, CFP®, RICP®, CRPC®, CCFC

If you’ve been exploring financial advisors, you might come across terms that are unfamiliar to you. One important term to focus on is “fee-only.” What exactly does this mean, and why does it matter? In this brief video, we clarify everything you need to understand about fee-only financial advisors and wealth managers—and the many benefits of working with a CFP® professional.

Transcript

Introduction to Fee-Only Financial Advisors

Hi, I’m Joe Dowdall, a financial planner at Worth Asset Management. At Worth Asset Management, I have the opportunity to assist individuals who are planning for or currently in retirement with holistic financial planning. If you’re considering working with a financial planner, you may have come across terms that are unfamiliar, especially if this is your first time seeking out financial advice. One term you may encounter is “fee-only,” which can be confusing for many.

In this video, I’ll explain what fee-only means, why it’s important to understand how you’re paying your financial advisor, and why working with a CERTIFIED FINANCIAL PLANNER (CFP) professional who operates on a fee-only basis can be beneficial for you.

What Does Fee-Only Mean?

The term “fee-only” is used to describe financial professionals—typically Registered Investment Advisors (RIAs) or CERTIFIED FINANCIAL PLANNER professionals—who are compensated directly by their clients. Fee-only advisors do not receive any type of commissions, kickbacks, or incentives for recommending specific products or investments. This method of compensation helps eliminate conflicts of interest, ensuring that the advice you receive is unbiased and focused on your best interests.

How Are Fee-Only Advisors Paid?

Fee-only advisors are compensated in several ways, depending on the structure they use. The common payment methods include:

• Hourly Fees: You pay a fixed amount based on the time your advisor spends with you. This is ideal if you need specific advice or a limited scope of service.
• Flat Fees: Similar to hourly fees, but instead of paying for each hour, you pay a single fixed fee regardless of how many hours you spend with the advisor.
• Assets Under Management (AUM) Fees: Fee-only advisors who charge based on AUM take a percentage of the total value of your investments. This tends to be around 1%, but it can vary depending on the firm and the size of your portfolio.

Benefits of Choosing a Fee-Only CERTIFIED FINANCIAL PLANNER

If you’re looking for a wealth manager, you might be wondering why it’s important to choose a fee-only advisor. Here are the top four benefits of working with a fee-only CERTIFIED FINANCIAL PLANNER:

1. No Conflicts of Interest
   Fee-only advisors don’t sell products, which means they have no incentive to push certain financial products or services. They are solely compensated by you, the client, ensuring their recommendations are made with your best interests in mind.
2. Fiduciary Duty
   Fee-only CERTIFIED FINANCIAL PLANNER professionals are legally and ethically bound to act in your best interest at all times. They will provide advice based on your unique financial situation and goals, not based on what will provide them the most commission.
3. Objective Advice
   When it comes to your money, emotions can sometimes cloud your judgment. A fee-only financial planner offers objective advice that takes emotions out of the equation. They will provide clarity and guide you in making well-informed decisions for your financial future.
4. Improved Financial Well-Being
   Studies show that people who work with a CERTIFIED FINANCIAL PLANNER professional enjoy a better understanding of their finances, feel more confident about their financial decisions, and experience greater life satisfaction. A fee-only planner can be a partner in helping you improve your financial well-being.

Why I Choose to Be a Fee-Only Advisor

There are many reasons why I’ve chosen to work as a fee-only CERTIFIED FINANCIAL PLANNER professional. First, I believe that a fee-only structure helps clients feel more confident in their financial decision-making, knowing that the advice they receive is free from any conflicts of interest. Additionally, working as a fee-only advisor allows me to focus solely on helping clients improve their financial well-being by simplifying their financial matters and saving them time and effort in organizing their finances.

Contact Worth Asset Management for Financial Guidance

I hope this video has helped clarify what a fee-only advisor is and why it’s beneficial to work with a CERTIFIED FINANCIAL PLANNER professional. As a financial planner, my priority is always to act in your best interest, providing you with undivided loyalty and helping you pursue your financial objectives.

If you’re interested in retirement plan management, portfolio management, or personalized financial planning services for your family or business, I invite you to reach out. We offer a simple, no-cost, no-obligation 15-minute introductory call.

You can contact me at 469-423-1989 or by email at joe@worthassetmgmt.com. Thank you for your time, and I look forward to helping you with your financial planning needs. Stay safe and have a great day!