When it comes to managing your money, having the right financial advisor matters because a fee-only financial advisor charges you a transparent fee for their advice that can be billed hourly, as a flat rate, or a percentage of assets under management---unlike commission-based advisors who make money selling you products, which could create a conflict of interest. Bottom line: A fee-only financial advisor has one goal, to help you achieve your financial goals and not sell you insurance or investment plans that you don't need.
Not all financial advisors are the same---while a commission-based advisor may provide advice for free, they typically earn money through commissions on products sold. A fee-only advisor, however, has no hidden incentives: You pay them directly for their time and expertise, just as you would a doctor or lawyer.
If you are thinking about hiring a financial advisor, here are three reasons why it may be worth your while to choose a fee-only financial advisor:
Investment Advisor work for you, not for a commission.
You know exactly what you're paying and why.
Their focus is on your financial goals, not product sales.
A fee-only advisor helps you stay on track with reliable advice, whether you're managing debt, saving for retirement, or making plans for a child's education.