An Insight into Fee-Only Financial Planners

Financial planning is a critical element of successful wealth management. Whether you’re preparing for retirement, saving for a large purchase, or simply trying to maximize your wealth, it’s essential to have a plan in place. One of the most trusted aids in this process is hiring a financial planner. An alternative to the traditional commission-based financial advisors, ‘Fee-Only Financial Planners’ have emerged as popular professionals in the financial world. But what are fee-only financial planners and how do they differ from their commission-based counterparts? Let’s take a closer look at these professionals.

Essentially, a fee-only financial planner is a financial advisor who is compensated solely by the client, not from commissions associated with products or securities they sell. This fee can be charged in several ways: hourly consultation fees, a flat fee for a specific project, or a percentage of the assets they manage for the client. The central advantage of this model is the elimination of the potential conflict of interest inherent in the commission-based model, where advisors may have incentives to recommend certain products or actions that benefit them financially but are not necessarily in the client’s best interests.

Benefits of Fee-Only Financial Planners

In addition to removing the conflict of interest, fee-only financial planners have other key benefits. These include transparency, potential cost savings, and access to independent and objective advice. Since these advisors are paid by the clients, not via commissions, it encourages them to act as fiduciaries, meaning they’re legally bound to put the client’s interest first.

Of course, fees associated with hiring a fee-only financial planner can differ significantly based on numerous factors like the complexity of services required, experience level of the planner, and geographical location. For example, the financial advisor fees average Australia may vary widely from the average fees in the United States.

This transparency in fees provides clarity on what you are paying for, and potentially saves you from the hidden charges associated with commission-based advisors. Additionally, since fee-only financial planners don’t earn direct financial benefits from the specific financial products they recommend, they’re more inclined to provide impartial advice that truly fits the client’s unique needs and circumstances.

Selecting the Right Fee-Only Financial Planner

The decision to hire a fee-only financial planner should be based on thorough research and consideration. Depending on the financial goals and the complexity of the financial scenario, the costs associated with a fee-only planner could outweigh those of a commission-based advisor.

Always consider the level of service required, the experience and credentials of the planner, previous client testimonials, the planner’s fee structure, and their fiduciary status. Remember, the right financial planner is not just about ‘cost’ but about the ‘value’ they bring to your financial health.

Indeed, fee-only financial planners may be a great choice for those who prioritize the objectivity of advice and want clarity in their financial planning costs. As always, it’s essential to do your homework and engage a professional who reflects your financial goals and values.

By Rita Lowman

For centuries, banks have influenced the economies and politics of the world. Traditionally, banks originated as places where businesses could secure loans to purchase inventory, and thereafter collect the funds with interest once the goods were sold. The origin of the word bank is derived from the Italian word, “banco” or desk. During the Renaissance, Florentine bankers conducted their transactions above desks covered in a green tablecloth.

It has been speculated the earliest banks were actually religious temples in the ancient world, where deposits of grain and other goods were made. Considered sacred places, these temples were well protected from potential thieves. There are also historic records which point to loan activity extended by priests to merchants in ancient Babylon. Hammurabi’s Code, the oldest, best preserved law code in existence was created circa 1760 B.C. and includes laws which were used to govern bank operations.

Not surprisingly, the Ancient Greeks further developed the concept of banking. Transactions such as loans, deposits, currency exchanges, and more were conducted in temples as well as private and civic components. Evidence also points to the concept of credit. In return for payment from a client, a creditor in one Greek port would write a note of credit that the client could later cash in another port city. This convenient method saved the client from the danger of carrying coinage with him on his journey. Historic records indicate that a Pythius of the early 5th century B.C. operated as a merchant banker throughout Asia Minor.

The rise of the Roman Empire brought about greater administrative and financial regulations for banking. The charging of interest on loans was further developed by scrupulous financiers, making the system highly competitive. However, the bank system eventually broke down in large part to the Roman preference for cash transactions. Following the fall of Rome, Western Europe essentially abandoned banking. It did not experience a revival until the need for financing the Crusades stimulated its re-emergence.

Interestingly, the world’s oldest bank has been in existence since its founding in 1427. The Banca Monte dei Paschi di Siena SPA (MPS) was created in the city state of Siena, Italy. The bank today is comprised of nearly 1,800 branches, 28,000 employees and more than four million customers in Italy and abroad.

Fast forward to Western banking history, which is generally traced to the coffee houses in London. Founded in 1565, the Royal Exchange acted as a center of commerce for the city. A hierarchy of banking started at the top with bankers who conducted business with heads of state, followed by city exchanges, and at the bottom, pawn shops. In 1609, the Amsterdamsche Wisselbank (Amsterdam Exchange Bank) was established, making Amsterdam the financial center of the Western world.

Concepts of capitalism extolled by Adam Smith, considered the father of modern economics, and the advent of the Industrial Revolution gave way to a massive growth in the banking industry in the 18th and 19th centuries. In the United States, the first banks required special permission from the state government to operate. The state’s supervision proved inadequate as individual banks began issuing their own notes. By 1860, more than 10,000 various bank notes were circulating throughout the country. Counterfeiting was rampant and hundreds of banks failed. Government reforms created a new system of banking which included an involved method for producing authentic bank notes.

With the onset of the worldwide depression in the early 1930s, banks took a hard hit, which led to Congress’ creation of federal deposit insurance. President Franklin D. Roosevelt oversaw the implementation of laws aimed at limiting risks to banks and restoring Americans’ confidence in the banking system.

Since then, banking has undergone a revolution with technology transforming the way Americans bank. First telephone banking, and then ATMs, debit and credit cards, have lead the way to new innovations. Today, online banking and electronic money are evolving. Banks strive to serve the greater public in a competitive market that ensures a safe and sound banking system. From religious temples and Italian desks to coffee houses and the Industrial Revolution, banking has forever changed the way we live.

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By Tim H Lambert

Months before you begin to look for a new car or home, it is necessary to take steps to be approved for your credit loan. The first useful step is by making a list of all of your existing loans and credit cards, including account numbers, company names and monthly payment amounts. This step will assist you in analyzing the information on your credit report. If possible, include also all your closed loans and credit accounts.

Have a check up in your finances before meeting with good mortgage lender for a full credit approval. While you are in the process of being approved, your own credit report will be requested. The credit score typically includes all the data from all three credit bureau – Equifax, Experian, and Trans Union. The credit report shows the three credit scores from each credit bureau. The type of loan as well as its interest rate available for you is affected by your credit score. If you can’t understand what’s in your credit report, ask for the assistance of a mortgage professional and they will present proposals on the best way to improve your score. Once you have seen your credit report, make some correction if there are mistakes because credit bureaus often commit mistakes in the data. Remember that everything is done by compute so it is possible that you have some concerns on your credit report that must be corrected or disputed. Checking of your credit file is free of charge so take advantage of it.

After checking the credit report, you must face the real credit issues. In order for you to successfully address the real issue, you need the advice especially on the time it will take for all the issues will stay on your report as well as re-building your credit merit. It is ideal to talk to a financial advisor or personal counselor to working out of debt and ultimately trying to establish enhanced habits.

Now that you have altered your credit report for your own good, you must now understand how a credit score helps you in borrowing money. Below is the range of credit scores:

-Less than 620-Poor

-620-680 -Average

-680-720 – Good

-720 – 800 – Excellent

-800-850 – not often seen

Having known the range of credit score, try to aim for good to excellent because being in the average category will require you to add more money in order to be approved in the loan that you want

You should know the rules that govern the credit scoring. The factors that affect credit scoring are the following:

* The payment history comprises 35% of your credit score. You must pay all your bills on time to have a good credit score.

* The connection involving your available credits against how much you have is about 30% of your credit score. If you are over 50% drawn against your available credit, this will count against you.

* Your payment history accounts to 15% of the credit score. A loan that is more seasoned can give you higher score.

* If you made inquiries on your credit report accounts to 10% of your credit score so you should make any inquiries to a minimum.

* Lastly, the type of credit you used accounts for 10% of your credit score.

About the Author: Improve your credit score now, go to CreditScoreBooster.com. Let the experts show you how to raise your credit scores.

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