One of my first goals when talking with a new prospect, or even an existing client, is to help them fully understand how I am paid. I am a firm believer in fee-only financial planning. This model was what motivated me to make a career change and start Janus Financial Planning. I thought it only appropriate that I start my new blog posts with an explanation on what this "Fee-Only" Fiduciary model means.
Overview
The financial advisor model has changed over the last several decades. From the investor perspective, these changes provide more options, more transparency, and more of the kind of services that used to be accessible only by those with a great deal of wealth.
The fee-only fiduciary advisor gets paid to provide advice to their clients, whether in financial planning, asset management, or both. The fiduciary standard is a key piece of this. To act to the fiduciary standard, an advisor must always put a client’s interest above their own. Fee-only advisors get paid exclusively by their clients and don’t receive commissions or kickbacks from recommending certain products or services.
Trust is at the heart of all financial advisory relationships. As an investor, you want to find an advisor that you can trust and a transparent fee structure is a critical part of that.
Advice is The Core
While investment management has been the industry's focus for years, true holistic financial planning was often only available to investors with great wealth. Today, the fee-only model is bringing more advice back into the mix. More advisors are tailoring their service offerings and client relationship models to focus on a more holistic, accessible form of advice rather than strictly investment management.
Financial advice is more than asset selection and portfolio management. Holistic financial advice is designed to help investors increase their financial wellness across their entire financial journey. Advice is tailored to help you increase wealth where you are and build wealth as you move towards your goals and into the future.
An advisor now may act as a family CFO, helping you understand the decisions you need to make every day. Advice is tailored to what you need in the life stage where you are.