Can fee-only financial planning actually save me money?
Clients of a fee-only financial planner know exactly how much they are paying for the advisory services being rendered.
Since we do not invest client funds into mutual funds with sales fees, an immediate saving for many clients is the amount they may be (unknowingly) paying in commissions. Whether those fees are up-front, deferred, or annual, they may be more costly than retaining a planner. (Utilizing investments such as exchange-traded funds with lower annual expenses than many mutual funds also contributes to annual savings.) Studies1 also demonstrate a diversified portfolio that is rebalanced regularly (a routine practice for most fee-only financial planners) has the potential to yield higher annual returns over the long run.
With a fee-only financial planner, the planner’s fiduciary responsibility is to his or her client, not a brokerage or insurance company.