Note “paid” vs “paid”. A “fees only” financial planner

Even if you just inherited an unexpectedly large amount of money, you are looking for Buy a houseor you are figuring out how to secure the money retirement— There are many reasons to hire a financial planner.And when it comes to finding the right financial planner for you, the last thing you want is is to get ripped offThe Difference Between Finding Someone You Can Trust and Finding Someone You Can Trust get the miseld can be boiled down to one important term.base versus feethat’s all financial planner.

Here’s what you need to know about the difference betweenFee-Based and Fee-Only Financial Planners —How to make sure you can trust the right advisors.

Who can call themselves a financial planner?

First, as it is previously covered, not all financial advisors can call themselves a Certified Financial Planner® (CFP). A qualified CFP must: Certified Financial Planner Board of Standards, Inc. CFP has fiduciary dutywhich means that you must act legally your This is where the difference between “fees only” and “fees based” comes into play.

What is the difference between a “Paid” Advisor and a “Paid” Advisor?

paid planner Acting as a fiduciary and only indemnified by the client (you).They cannot accept third party fees.

Paid Advisorbut you are paid not only through other sources such as commissions from investment products. Therefore, there is a conflict of interest. If you see people touting their services as “paid,” they want you to confuse them with paid planners.

How to choose the financial planner that’s right for you

If you’re stressed by the world of difference between fee-only and fee-based word-of-mouth, don’t worry. Here are some additional ways to scrutinize your financial planner before committing your money to them. These tips are from Liz Weston, a certified financial planner and personal finance her columnist. oregon live:

• Interview multiple candidates. Don’t be locked into the first planner you find. Before committing to someone’s services, ask how they are paid and what you can expect from both their initial cost and the cost of the investment they recommend to you.
• Know the right questions to ask. As explained above, financial her planners must ensure that they have a fiduciary duty to act in the best interests of their clients. Ask about their qualifications and experience. They usually include whether they offer advice to clients similar to yours.
• Do your own background check. Check your Certified Financial Planner status at cfp.net/verify-a-cfp-professional Check their background at BrokerCheck.finra.org.

If there’s one key takeaway here, it’s to ignore fee-based advisors and go with fee-only financial planners who must put your interests first.