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Choosing a Financial Planner
Compensation Method
During your search you may have come across two basic types of
financial planners:
- Wealth manager: manages a portfolio on your behalf and provides
supplemental advice in exchange for a percentage of assets under management.
They invest your money on your behalf and take a slice of the pie as
compensation.
- Commissioned planner: provides supplemental planning in conjunction with
selling products to
implement the advice.
The former tends to focus on wealthy individuals with a large pool of assets to
manage while the later will work for the less affluent because the cost of
services is "hidden" in the products sold, creating low or no out of pocket
expenses for the client.
But...
These approaches to financial planning
leave many people with no one to turn to:
- What happens if you are happy managing your own money and just want
a little coaching?
- What happens if your wealth is tied up in real estate or retirement plans
which hold less interest for
wealth managers
because their fee structure usually requires liquid, taxable
investments?
- What happens if you have just begun accumulating wealth and you want advice
without a sales pitch?
- What happens if you are still trying to develop the building blocks
of a successful financial future and need to pay down debt or build an
emergency fund, not buy investment products?
A Different Approach
Everyone has a different situation, some require detailed financial analysis
others need general direction or support.
The approach at Applied Advisor provides people of all income levels access to professional advice at a
fair price without sacrificing fee-only, expert guidance. Advice is
provided on an hourly basis with no minimum dollar value
to start or maintain a professional relationship.Applied Advisor
is a California Registered Investment Advisor.
Financial planning, tax preparation, and primary client contact is provided by
Kathy Hentges, CFP®, founder and principal of Applied Advisor.
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