Compass Rose Financial Planning - Financial Planners, Investment Advisors, Portfolio Managers located in Rancho Mirage, CA.

What is a Fee-Only Financial Planner?

Compass Rose Financial Planning is a Fee-Only NAPFA-Registered Financial Advisor and CFP^® Certificant

There are compelling reasons for choosing a Fee-Only Advisor! Remember, most advisors are NOT Fee-Only! Ask!

Note: There are an estimated 250,000 people calling themselves financial planners; yet only 56,500 have earned the Certified Financial Planner™ mark.

However, Fee-Only financial planners are still a rare breed. There are FEWER than 800, practicing, NAPFA-Registered Fee-Only financial planners. In order to be a Registered Financial Advisor with the National Association of Personal Financial Advisors, a financial planner must have at least three years of comprehensive financial planning experience.

So what is a Fee-Only Financial Planner and what should you be looking for when choosing a Financial Planner?

When selecting a financial advisor, there are a number of factors you should take into account: expertise, experience, integrity, personal compatibility, and compensation. When looking for objective advice you shouldn't ignore how your financial advisor is compensated.

Fee-Only advisors derive no compensation from selling commission-based products; any compensation they receive comes from their clients. This ensures that the advisor is working strictly on the client's behalf and isn't inclined to favor products that may not be in your best interest.

Compass Rose Financial Planning is a Fee-Only Registered Investment Advisor, registered with the State of California. We have a fiduciary duty to you.

Your best bet for a Fee-Only financial advisor is to find a Registered Investment Advisor (RIA). RIA's that manage more than $100 million are registered with, and regulated by, the Securities and Exchange Commission (SEC). Fee-Only RIA's who manage less than $100 million are just as qualified; the only difference is that they are registered with and regulated by their respective states.

RIA's have a fiduciary responsibility—the highest legal duty—to always put your best interests first, even if it may not be the most profitable to the advisor.

Note: Some “fee-based” planners work under a “suitability” standard rather than a fiduciary duty. Whereas advisors who have a fiduciary duty should be able to demonstrate they've chosen the best products for their clients, advisors operating under the suitability standard should make recommendations that are suitable (though maybe not the best) for their clients.

Compass Rose Financial Planning only charges by the hour, and there are never any up-front fees. You only pay, on a monthly basis, for work that has been completed.

Fee-Only advisors may use different compensation structures. Here are some of the most common ones.

Hourly
Flat Fee for Project
Asset Under Management – usually a stated percentage
Monthly, Quarterly or Annual Retainer

Financial planners who charge by the hour may be your best bet if you need help getting your investment plan up and running and keeping it current long into retirement. Expect to pay $150-$300 per hour for a professional that is a Certified Financial Planner Certificant™. Compass Rose Financial Planning charges $200 per hour.

Note: “Fee-based” advisors may accept compensation from clients as well as commissions from third parties, such as mutual funds or insurance companies when they sell their products. Therein lays the potential conflict of interest.

Additionally, “fee-based” advisors may only be able to recommend that you invest in a narrow range of products they have the credentials to sell rather than provide sound, high-level investment advice.

While you may pay a fee-based advisor less outright compensation than what you'd pay for a Fee-Only advisor, fee-based advisors can earn commission by putting you in certain products, and the commission they earn on some investments may be higher than others. Thus, the advisor may have a financial incentive to favor one product over another.

Compass Rose Financial Planning is the clear choice and a better value! Give us a call today!

Consider the price you are willing to pay for a little peace of mind. Fee-Only advisors have access to thousands of no-load and low-load products as well as many discounted services. They are not limited to company-sponsored offerings and sales-driven opportunities.

The result is an unbiased financial plan created by a professional who is committed to acting as a fiduciary in a client-centered relationship. Clients of Fee-Only advisors recognize that the fees they pay are a real value when the overall benefits of comprehensive planning are considered.

To receive a free consultation, give Compass Rose Financial Planning a call today. You will also receive
The pamphlet, “Working with a Fee-Only Comprehensive Financial Planner” published by NAPFA.
The article “The Difference Between Fee-Based and Fee-Only Advisors” by Esther Pak, Assistant Site Editor of Morningstar.com.

Phone: 760-321-5305 | Fax: 760-406-4051 | Email: Info@compassrosefp.com
Compass Rose Financial Planning, Rancho Mirage, California

CREATED BY THETFORD WEB DEVELOPMENT