Know the cost of hiring fee-only Financial Planners in Los Angeles

Financial Advisors are qualified professionals who operate within specific industry guidelines for the protection of interest to clients. A fee-only financial advisor, sometimes referred to as "no commission" advisor is only eligible to receive direct payment from you instead of being compensated through commissions or other payment modes. Therefore, it is necessary to know how a fee-only Financial Advisor can be compensated so that the best results can be obtained from their services.

Cost of hiring a fee-only Financial Planner

The cost of hiring a fee-only Financial Planner in Los Angeles is different from other Financial Advisors. The most common compensation method to a fee-only Financial Planner is "Asset under Management" where the planner receives a specific percentage of the assets managed by him. Generally, a specific amount is debited every quarter from the asset owner’s account. This method is preferred for clients who have a significant amount of investment assets to be managed, especially those who are nearing retirement.

Another method is charging at per hour or per month basis. While this helps the service receiver to ensure a true return for the amount spent but you would need to pay for a phone call or a quick visit. Other fee-only planners charge a flat rate or a fee according to the services rendered. This kind of payment methods helps planners in addressing a diverse set of financial needs and addressing a diverse set of clients.

There are financial planners who provide services to high net worth individuals for which the services can cost much higher since they are dealing with more assets and investments. However, it is important to note that the fees paid to a fee-only financial planner in Los Angeles will depend on the method of charging, the services that are provided and the location where such services are provided.

Tips to find a fee-only financial planner

Hiring a financial planner is a crucial decision to make as it will determine the effectiveness and efficiency with which your finances are managed. There are countless people around the Globe who claim themselves to be either financial planners or financial advisors and they differ from one another in qualification and experience. Therefore, finding the appropriate fee-only Financial Advisor can be a difficult decision to make.

Some of the commonly followed ways of hiring a fee-only Financial Planner in Los Angeles are as follows –

• Searching at banks, financial institutions, large brokerage firms or independent advisory firms. Most reputed firms have some of the best financial planners in town who are capable of providing a varied range of services.
• Another effective way of searching for a financial advisor is by browsing the internet. You can find a plethora of options at your disposal from where you can select the most appropriate one depending on your financial needs.
• Many people start their search by seeking referrals from friends, colleagues and relatives. This is quite an effective search method, especially when you connect with someone in the same financial situation as you.
• You can also pay a visit to the National Association of Personal Financial Advisors’ (NAPFA) website which guarantees to provide advisors who will work for your best interest.
• The Certified Financial Planners (CFP) Board also maintains a directory of planners with the requisite advisory qualifications. While being a CFP does not guarantee a fee-only service but it certainly guarantees that the planner is educated, ethical and experienced in his services.

Searching for investment management services in Orange County & Los Angeles? Otium AG helps ✔ assists in investment management to secure future financially!