Choosing a Financial Planner

Choosing a Financial Planner

Financial Planning Services

Financial Planning Services

Looking for & Choosing a Financial Planner

Looking for & Choosing a Financial Planner

The Importance of "Full Disclosure"

The Importance of "Full Disclosure"

Financial Planner Fees

Financial Planner Fees

How to Repair your Credit

How to Repair your Credit

Financial Planning Basics

Financial Planning Basics

How to Save Money

How to Save Money

Choosing a Financial Planner

Choosing a Financial Planner

How to Create a Budget

How to Create a Budget

Financial Survival After a Job Loss

Financial Survival After a Job Loss

Kids And Money Management

Kids And Money Management

Investment For Beginners

Investment For Beginners

Six Steps For Organized Finances

Six Steps For Organized Finances

Successful Money Saving Steps

Successful Money Saving Steps

The Importance of a Written Financial Plan for Retirement

The Importance of a Written Financial Plan for Retirement

Successful Money Saving Steps

Successful Money Saving Steps

Six Steps For Organized Finances

Six Steps For Organized Finances

Annuitizing Income

Annuitizing Income

Picking The Perfect Financial Planner

Picking The Perfect Financial Planner

Beginners Budgeting Basics

Beginners Budgeting Basics

Saving Money With Coupons

Saving Money With Coupons

Investment For Beginners

Investment For Beginners

Investment Planning

Investment Planning

Best Investment Options

Best Investment Options

Investment Strategies

Investment Strategies

Investment Management

Investment Management

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Financial Planning Association

Financial Planning Association

www.FPAnet.org  

1-800-322-4237

The Financial Planning Association (FPA) is a nonprofit, leadership and advocacy organization connecting those who provide, support and benefit from financial planning. FPA represents a promise of financial well-being, hoping to create a world where everyone thrives and prospers. Based in Denver, Colo., FPA has 96 chapters throughout the United States representing more than 25,000 members involved in all facets of providing financial planning services. Working in alliance with academic leaders, legislative and regulatory bodies, financial services firms and consumer interest organizations, FPA is the premier resource for the public to find a financial planner who will deliver advice using an ethical, objective, client-centered process.

Financial Planner Fees

Mark Johansson: Hi! I am Mark Johansson and I am the member of the Financial Planning Association. I am here to discuss choosing a financial planner. And Right now, I am going to talk about how planners charge for their services.

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Mark Johansson: Hi! I am Mark Johansson and I am the member of the Financial Planning Association. I am here to discuss choosing a financial planner. And Right now, I am going to talk about how planners charge for their services.

Financial planners can be paid in a variety of ways for their work. Some are paid by more then one method. Each method has its merits, choosing the appropriate method depends on your individual situation. The planner's competence and ethical standards should be the primary consideration in your selection process. However before entering into a relationship with a planner, you should have a clear understanding of how he or she will be compensated. It's important to consider which compensation arrangement may best suite your needs. There are several commonly accepted methods. Three methods tend to dominate how financial planners charge for their services.

Under the fee only arrangement the planner is compensated entirely from fees for purposes of consultation, plan development or investment management. These fees may be charged on an hourly or project basis depending on your needs or on a percentage of assets under management. Fee only financial planners must meet the following criteria. The planner must be compensated solely by all of their clients in the form of a fixed, flat, hourly, percentage or performance based fee by all of its clients and in all circumstances. The planner does not receive compensation or incentives from any third party. The planner does not receive any compensation that is contingent on the purchase or sale of a financial product. The planner does not receive commissions, rebates, awards finder's fees, bonuses or any form of compensation from a third party due to any client's implementation of a financial planner's recommendations.

Next, is the commission only method. There is no charge for the planner's advise or preparation of a financial plan. Compensation is received solely from the sale of financial products you agree to purchase, in order to implement the financial planning recommendations.

Then there is fee and commission. A fee is charged for consultation, advice and financial plan preparation on an hourly, project or percentage basis. In addition, the planner may receive commissions from the sale of recommended products used to implement your plan.

Two other methods that you may come across are fee offset or salary. Under fee offset commissions from the sale of financial products are offset against fees charged for the planning process. And under salary some planners will work for salary and bonus basis for financial services firms.

In all of the above categories of compensation, you should request information on any real or potential conflicts of interest. In addition to the commissions received form any financial product sales, you should ask whether there are outside incentives or bonuses to be gained by the planner for certain recommendations.

And remember by following these steps and choosing the right planner you can make the most of your financial resources.

Picking The Perfect Financial Planner

Picking The Perfect Financial Planner

Financial Survival - Planning

Financial Survival - Planning

Financial Survival - Basics of Job Severance Packages

Financial Survival - Basics of Job Severance Packages

Financial Survival - Insurance and Retirement Plans

Financial Survival - Insurance and Retirement Plans

Financial Survival - Creating a Spending Plan

Financial Survival - Creating a Spending Plan

Financial Tips To Survive Job Loss

Financial Tips To Survive Job Loss

Budgeting - Taking Financial Control

Budgeting - Taking Financial Control

Financial Strategy For A Down Economy

Financial Strategy For A Down Economy

Financial Planning

Financial Planning

Gathering Data for your Financial Plan

Gathering Data for your Financial Plan