When it comes to wealth management and financial planning, it is essential to find a financial planner that has your best interests in mind at all times. Unfortunately, many financial advisors and planners have conflicts of interest because of the way they are compensated. For example, many advisors receive back-end commissions paid by financial institutions for selling specific financial products to their clients. This can create a misalignment between what the advisor is incentivized to sell and what the client needs.
The best way to avoid this misalignment of incentives is to hire a fee-only fiduciary financial planner.
What is fee-only financial planning?
Put simply, a fee-only financial planner is paid directly by you—the client—and no one else. This means that they aren’t incentivized to sell any specific financial products, and all the advice they give you is aligned with what’s best for your situation. This creates a strong incentive alignment between client and planner, allowing them to focus on creating optimal financial outcomes rather than balancing back-end commissions with client needs.
As a fee-only financial planner, all potential investments and product options are available, as there is no incentive to steer clients towards one specific financial product, investment, or solution. This gives planners the ability to choose from various options when creating a unique financial plan for their clients.
For fee-only financial planners, there are several different compensation structures paid directly by the client. Some of the most common are:
Despite their differences, each of these compensation models can be beneficial, depending on your unique situation and financial planning needs. In addition, each model maintains a transparent and aligned relationship between the client and the planner, leading to optimal financial outcomes.
What is a fiduciary?
A fiduciary is a person that acts on behalf of another, putting their clients’ interests ahead of their own. When hiring a financial planner or advisor, it is imperative to find a fiduciary who is legally, morally, and ethically obligated to act in your best interest at all times.
Unfortunately, not all financial advisors are held to a fiduciary standard. That said, by ensuring that you are working with a CFP® practitioner, you can rest assured that your advisor has sworn a fiduciary oath to their clients, obligating them to act in your best interest at all times.
TrueNorth Wealth: Your Local Financial Planner and Fee-Only Fiduciary that is ready to help here in Boise, ID.
At TrueNorth Wealth, we are proud to offer our clients fee-only financial planning held to a fiduciary standard. We understand the importance of aligning our incentives with our clients, which is why we choose not to sell any financial products and are solely compensated by our clients for the advice and services that we offer.
When planning for your future, you can rest assured that all the advice and recommendations we provide are in your best interest at all times, maintaining our fiduciary standard while helping you reach your financial goals.
Let’s get started with your Fee-Only Financial Investment Management.
If you’re interested in working with a fee-only fiduciary financial planner to help guide you on your financial journey, then let’s get started. Click below to schedule a complimentary consultation and meet your CFP® professional at our Boise, ID office or through teleconference if that is preferred.