Why You Need a Fee-Only Financial Planner

When you’re looking for the best financial planner or advisor for your wealth management services, you may be seeking qualities such as a good reputation and a broad array of services — both of which are critical, of course. However, what if somebody told you that when seeking out a financial planner, one of the most crucial things to consider is the manner in which he or she takes compensation? You don’t always consider the inherent conflicts of interest that can arise in a professional’s compensation. The truth is, though, that the question of how compensation is obtained can stand in the way of you receiving the objective advice you need to make the decisions that are right for you and your family. For this reason, IMAFS exclusively performs fee-only financial services for the communities we serve here in Boise, Idaho.

Why We Do Fee-Only Financial Services

There are three types of compensation that are most apparent in the financial industry:

  • Commission-Based — This means that the firm in question is paid for selling financial products such as annuities and insurance.
  • Fee-Only — In this system, a yearly fee is charged based on the number of assets that are being handled by the financial planner or advisor.
  • Fee-Based — This is a combination of the first two forms of compensation, where a firm both receives commissions for products and charges a fee for the number of assets managed.

The reason people seek out professionals, such as lawyers and doctors, is for a trusted second opinion concerning, and a potential solution to, one’s situation. Difficulties can easily arise when a firm has other financial incentives that could cause him or her to act contrary to a client’s best interest.

With fee-only financial services, on the other hand, “All Potential Solutions are on the Table.” The interests of the client are inherently tied to the interests of the advisor, so you can rest assured knowing that you have a trusted confidant and friend dealing with your family’s dreams and your life’s work.

According to CFP Board demographics, there are presently 76,724 certified financial planners in the U.S. However, not all of these financial planners receive compensation in the same way. With fee-only financial services, financial planners are compensated for wealth management and advisory services, not for the commission of other sources such as the companies and financial products they may recommend. Instead, they are paid directly by their clients through a transparent and prearranged payment plan. This can be a monthly retainer, an hourly or project rate, or a percentage of the investments managed.

When working with NAPFA Registered Financial Advisors like ourselves, there are no commissions, hidden fees, product sales, or third-party payments.

Start Building Your Future Today with IMAFS & Our Fee Only Financial Planning

With IMAFS, everything that we’re about starts with you: the client. When we began our business years ago, we decided that we wanted to create a firm from the client’s point of view. We asked ourselves what we would want if we were seeking a financial planner, and we set about building our firm from that starting point, with fee-only financial services serving as an integral part of that dream.

To learn more about the financial services we provide for Boise, Idaho residents, don’t hesitate to call our team today!