How to Pick the Best Fixed Fee Financial Planning Advisor

1. How to Pick the Best Fixed Fee Financial Planning Advisor Fixed fee financial planning is a comprehensive financial service that provides financial guidance on a specified budget. This type of financial planning service can be provided by a financial advisor, insurance agent, or stockbroker. All financial planners must be licensed and follow a rigid code of ethics. There are also many independent financial planners who do not work for any firm or organization. Generally, fixed-fee financial planning is the most recommended financial planning method. Many Financial Planners Offer a Mixed Package of Advisory Services Fixed fees refer to the amount of money paid as a fixed fee for financial advisory services. Financial planners who offer fixed fee financial planning services may also offer other types of advisory services such as estate planning, asset protection, retirement plans, and investment advice. These are very popular with busy working professionals. These advisors have access to a large number of investment options, which may not be available to clients with other types of financial planning services.

2. In a fixed-fee financial planning plan, a financial planner agrees to provide financial advice on a particular financial situation for a stipulated period of time. The initial consultation is free and the client decides whether he wishes to continue the consult after determining that his needs are best met through this plan. The final cost can either be a flat fee or an hourly rate. Many financial planners offer a mixed package of advisory services, which can include estate planning, retirement planning, investment advice, and other financial services such as mortgage and loans. Independent financial planners charge a fee for their services. Most independent planners have their own practice. They earn their living through their own incomes or by helping their employers secure the maximum savings for their employees. Some financial planners start their own practices because they felt drawn to it. Determine Fixed Fee Structures The main objective of financial planning is to create a long-term financial plan that will help you achieve your retirement and achieve other goals in life. Some financial planners also offer complimentary financial planning workshops for their clients. These workshops are usually held bi-weekly and can be attended by up to four people at one time. Financial planner fixed fees vary according to the scope of work and the client's requirements. A good financial planner should be able to provide comprehensive financial planning services at affordable costs. Some important factors that determine fixed fee structures include the number of years a financial planner has been in practice, expertise and the amount of experience that a planner has gained in the specific area of financial planning. The age of the client also contributes to fixed fees. The longer the client has been receiving guidance, the more he or she is likely to get a better deal. Clients who wish to pay lower fees should consult older clients. Joint Service Arrangement the Planner

3. Some financial planners charge fixed fees based on the percentage of the total annual budget. Fixed fees may also be charged according to the extent of financial planning services offered, such as a yearly or semi-annual review and assessment of an individual's financial situation. The cost of financial planning services should be compared according to the level of advice extended and the expected outcome of the advice. The service provider should provide financial planning advice without charging extra for this service. It should not ask for advance payment. There are two classifications of fees according to a fixed fee structure: single or joint service fees. A fixed fee arrangement between a financial planner and a client can either be a joint or single arrangement. In a joint service arrangement, the planner and the client agree on a fixed-fee payment structure, which includes fixed service and variable fee components. Under a single service arrangement, a financial planner interacts with the client only on proposals from him or her. Under this type of financial plan, a single financial planner is paid only for the plan services he or she provides. Regardless of whether the financial planner is a joint or single agreement, the services that the planner renders should be at reasonable rates and competitively priced to provide value for money.