What is a fee-only financial planner?
A fee-only financial planner is paid directly by their clients. This is different from financial planners who charge a commission through the products they sell. Typically, fee-only financial planners charge flat rates, hourly rates or a percentage of the assets that they manage for the client.
In the personal finance industry, the fee-only model is considered to be the most transparent because it puts the client’s interest first. Fee-only financial planners are also considered fiduciaries because they’re required to consider what’s in the best interest of their client, according to the National Association of Personal Financial Advisors.
What is a Certified Financial Planner?
A financial planner who has been designated as a Certified Financial Planner (CFP) by the Certified Financial Planner Board of Standards, Inc., has met various requirements laid out by the CFP Board. These requirements and prerequisites include completing financial planning coursework, passing an exam, getting professional experience and more.