You’re seeking a financial advisor to help you manage your wealth and map out your future. What you’re finding is a lot of advisors whose commissions and pricing structure reveal they’re more interested in building their own wealth than managing yours.

You may want to look into a fee-only advisor. These financial professionals offer greater transparency and can help you build a plan that’s right for you.

What Is a Fee-Only Financial Advisor?

Some financial advisors are commission-based, meaning they earn money from selling financial products, such as making stock trades. Other financial advisors are fee-based, meaning they earn a fee based on their services. A fee-only financial advisor is one who only relies on these fees rather than earning a commission by selling financial products.

These fees can be:

• A flat fee
• An hourly fee
• A percentage of the assets under management (AUM)

To be clear, there’s a world of difference between fee-based financial advisors and fee-only financial advisors. A fee-based advisor may still receive commissions based on the products they sell. But a fee-only advisor will only receive fees from their clients, which often translates into a higher degree of care.

Why Should You Choose a Fee-Only Financial Advisor?

Although only 30% of consumers have a paid financial advisor, there are many benefits to partnering with a trustworthy and skilled professional. Here are just a few of the advantages of a fee-only financial advisor.

Reduced Conflict of Interest

The biggest reason to choose a fee-only advisor is that they’ll keep your best interests at heart when offering financial advice. Commission-based advisors often feel pressured to sell you a particular financial product—either because it lines their wallet or because some registered reps are obligated to sell products offered by their employer.

A fee-only advisor has no such pressure. In fact, registered investment advisors and CERTIFIED FINANCIAL PLANNER™ professionals are legally required to act as fiduciaries. This means that they must always put the interests of their clients first and report any form of impropriety.

Transparent Pricing

Since a fee-only advisor charges for their services rather than a series of additional products, you’ll get transparent, up-front pricing. Flat fees and hourly fees are among the most common, though even those who charge a percentage of your AUM will only charge 1%, which makes it easy to predict how these fees impact your financial future.

These fee structures also provide flexible payment options. Clients can select from hourly, flat, or percentage fees to get the guidance that’s right for them. Of course, if cost is an issue, these transparent fees can also help you avoid expensive retainer fees or other added costs.

Comprehensive Care

Fee-only advisors are paid for dispensing quality advice, not selling you the latest products. This means these advisors are more focused on your money, your goals, and your life plan. As a result, you’re better equipped to develop a comprehensive financial plan, whether that’s saving for retirement, planning your estate, or another long-term goal.

In other words, fee-only financial advisors work to identify your goals and then work alongside you to figure out how best to pursue them. Instead of feeling pressured to make a particular investment decision, you’re given professional advice that aligns with your goals as well as your budget.

Are There Reasons Not to Consider a Fee-Only Financial Advisor?

To be fair, a fee-only financial advisor isn’t always the best solution. For instance, if you need guidance on a specialized financial product, you may need to seek the support of a commission-based advisor. And some fee-only advisors charge high fees that can be prohibitive for some investors.

Still, a fee-only financial advisor is a solid choice if you’re looking to build a comprehensive financial plan.

Find a Fee-Only Advisor

The right advisor can make all the difference. As a registered investment advisor and the head of Blair Capital Management, I am devoted to enhancing my clients’ financial well-being using my experience, skill, and ability to remain objective in any economic climate.

If you’re interested in learning more about your options and how I can help, call (914) 413-9904 or email johnblair@blaircapitalmgt.com.

About John

John Blair is President and Founder at Blair Capital Management, LLC, a Registered Investment Advisor (RIA) that endeavors to offer personalized service and customized investment solutions to individuals, trusts, and high-net-worth investors. After over 40 years of experience in the financial markets, John has had a front-row seat for every bull and bear market and wants to offer his experience, knowledge, and skills to individuals rather than institutions. With an unwavering dedication to acting as a fiduciary and a desire to build long-term, successful relationships, John helps his clients pursue their financial objectives. He cares deeply about safeguarding and growing their wealth, so they can focus on their lives—not their money. He strongly believes in a disciplined approach to investing with paramount importance placed on preservation of capital and measuring risk and reward through all circumstances.

John holds a bachelor’s degree in economics and master’s degree in business administration from the University of Southern California, and also completed graduate work in economics and philosophy. John and his wife of 45 years have four grown children and 13 grandchildren. In his spare time, he loves to read biographies and books about history and finance, and is a huge horse racing and football fan. John cheers for everything University of Southern California, and has been very involved in alumni affairs and mentoring students.

Blair Capital Management LLC (Blair Capital) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Blair Capital and its representatives are properly licensed or exempt from licensure.

 The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.

 All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.