Fee Only Financial Advisors

By Mika Hamilton

“Unless you have a definite, precise, clearly set goals, you are not going to realize the maximum potential that lies within you.” - Zig Ziglar

It is extremely trendy in today's financial market to hire a “fee only” financial advisor. This a great alternative for investors who want to invest on their own but need advice from time to time. This type of advisor is paid by the hour or a lump sum fee and not by commission resulting from the buying and selling of stocks.

An investor benefits from this type of arrangement in many ways. You do not have to question the motives of “fee only” financial advisor because he is not going to get paid anymore for suggesting you buy or sell stock. Their services usually include reviewing or creating investment portfolios. Many financial advisors are also educated in a number of different areas including real estate, higher education financing, retirement, and taxes.

Most investors do not realize that the majority of brokerages and financial advisors do not provide their services for free. Often payment details are never discussed until after stocks are bought and sold. The investor assumes that their advice is free. Their fees come right out of your account. Commission based advisors receive large chunks of what you are investing sometimes close to 5%. When hiring a “fee only” advisor you know his hourly rate right up front, and he gets paid only for the amount of time he puts into working for you.

The reason why “fee only” financial investors are so popular is because they offer the best of both worlds. They allow the financial planner make money while still being able to do what is right for their client. Investors can have more confidence in this type of advisor because their paid is a set fee and there will be no pressure to sell or buy stocks. Remember, commission based advisors get paid no matter what. If you are losing money in the stock market, they are still making money from you buying and selling stock.

If the majority of your investments are long term and you do not foresee buying or selling stock regularly then a commission based financial advisor might work well for you. However, if you work for a company that offers 401k's, they will often have a financial consultant which will work with you for free. They are being paid by the company to field questions about investments and the stock market. Take advantage of the benefits your job offers and consult a financial advisor, today, with all of your investment questions.

Visit the Global Investment Institute and signup for our free Investing For Beginners E-Course at http://www.Global-Investment-Institute.com

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