Cost Involved in a Financial Planner (1259)

Are you thinking of hiring a professional planner?

As you consider the benefits of a professional advisor, also consider the cost. Financial planners are paid in one of three ways: fee only, commission only, or a combination of fee and commission.

Fee-only planners charge a stated amount for a specific type of plan, or they may charge by the hour for developing your financial plan. Financial planners who charge by commission only generally give free advice and receive commissions on the insurance and/or investments they sell you.

The fee and commission approach combines both methods of payment, such as fee for the financial and, if you choose to implement the plan with that person’s products, a commission for the products sold.

A combination of fee and commission is the most common method of charging for services. The commission allows the planner to lower the level of fee. There is also the convenience of having the planner and seller of the product within the same firm. Otherwise, you’ll have to find another financial professional or firm to sell you the products (e.g., mutual funds) that your financial planner recommends.

For more information on this subject, Please visit the College of Agricultural Sciences Publications Web site.

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