Contrary to popular belief, seeking the services of a financial advisor or consultant isn’t just accessible to the wealthy and prominent citizens of a nation. Most people actually forgo using the services of such professional as they’re deterred by the additional fee they are charging.
As a matter of fact, there are three major kinds of financial advisors that you can talk to. These are:
- Fee-Based Planners
- Fee-Only Planners and;
- Commission-Based Planners
If you are seeking for the services of a financial planner and don’t want to spend too much, and then consider working with a commission-based would be recommended. However, you must know that these advisors are working on commission of some products. Due to this, you might expect that their service is one-sided.
Two-Side of the Story
There’s a chance that they may be pushy in persuading you to buy specific products which may not be in your best interests.
Then there’s the fee-only financial advisor. They’re more of an RIA or Registered Investment Advisors. Meaning to say, they have the obligation in providing clients with sound investment advice that is in the best interests of their clients. They should provide financial advice as per the specific situation of the client than giving advice that would convince them to buy financial products, unlike what commission-based advisors do.