Why FEE ONLY?
What is a Fee-Only Financial Planner?
COMPASS ROSE FINANCIAL PLANNING IS A FEE-ONLY NAPFA-REGISTERED FINANCIAL ADVISOR AND CFP® CERTIFICANT
There are compelling reasons for choosing a Fee-Only Advisor! Remember, most advisors are NOT Fee-Only! Ask!
Note: There are an estimated 250,000 people calling themselves financial planners; yet only 56,500 have earned the Certified Financial Planner™ designation.
However, Fee-Only financial planners are still a rare breed, with FEWER than 1,500 NAPFA-Registered Fee-Only financial planners practicing nationwide. In order to be a Registered Financial Advisor with the National Association of Personal Financial Advisors, a financial planner must have at least three years of comprehensive financial planning experience and submit a Comprehensive Financial Plan for peer review.
So what is a Fee-Only Financial Planner and what should
you be looking for when choosing a Financial Planner?
When selecting a financial advisor, there are a number of factors you should take into account: expertise, experience, integrity, personal compatibility, and compensation. When looking for objective advice you shouldn’t ignore how your financial advisor is compensated.
Fee-Only advisors derive no compensation from selling commission-based products; any compensation they receive comes from their clients. This ensures that the advisor is working strictly on the client’s behalf and isn’t inclined to favor products that may not be in your best interest.
Compass Rose Financial Planning is a Fee-Only
Registered Investment Advisor, registered with the State of California.
We have a fiduciary duty to you.
Your best bet for a Fee-Only financial advisor is to find a Registered Investment Advisor (RIA). RIA’s that manage more than $100 million are registered with, and regulated by, the Securities and Exchange Commission (SEC). Fee-Only RIA’s who manage less than $100 million are just as qualified; the only difference is that they are registered with and regulated by their respective states.
RIA’s have a fiduciary responsibility—the highest legal duty—to always put your best interests first, even if it may not be the most profitable to the advisor.
Note: Some “fee-based” planners work under a “suitability” standard rather than a fiduciary duty. Whereas advisors who have a fiduciary duty must be able to demonstrate they’ve chosen the best products for their clients, advisors operating under the suitability standard are only required to make recommendations that are suitable (though maybe not the best) for their clients.