When it comes to seeking financial advice, there are a variety of options available. From robo-advisors to online businesses and traditional financial planners, the cost of the service will vary depending on the type of advisor you choose. Robo-advisors are IT services that help you choose and manage investments and often require no account or minimum account to start investing. Other services, such as Empower and Facet Wealth, offer each client a certified and specialized financial planner who will work with you to build your investment portfolio and create a complete financial plan.
Online financial planning services typically cost less than a traditional in-person financial advisor. Commission-based advisors earn their money by selling certain financial products such as collective investment funds, insurance products, and other types of securities. Many advisors work with clients across the country as virtual advisors and use Zoom calls, email, and chat to stay informed about their plan. Some advisors offer “à la carte” services, allowing you to choose the type of financial planning services you want to focus on. The percentage that financial advisors charge can vary greatly, so it is important to ask about their rates and any discounts when you prepare to hire an advisor. While the price you pay to a financial advisor under the AUM commission model is calculated based on the assets you manage for you, you are likely to receive additional services such as developing a financial plan at no additional cost. If you plan to establish a long-term relationship with a financial advisor who charges you a fixed cost each year, a fixed-fee financial advisor may be the ideal solution for you.
On the other hand, if you want an advisor who provides financial planning and investment management services for around 1% of the assets you manage for you, it may be a good option to find an advisor who only pays fees and who charges based on the AUM. When looking for an insurance review from a financial advisor in Fairhope, Alabama, it is important to consider all of your options. Be sure to ask about rates and discounts when preparing to hire an advisor. Additionally, consider whether or not you would like to establish a long-term relationship with your advisor or if you would prefer an à la carte service.