Fees is a Four Letter Word

Why Fees Should Be a Primary Concern When Choosing a Financial Professional

Fees are a crucial factor to consider when finding a financial planner, advisor, or coach. If you don't understand how your financial professional is compensated, there's a risk it could be expensive, complex, or both. Let's explore the two primary fees structures:

1. Fee-only: Financial professionals using this fee structure only earn money solely from the services they provide directly to you. In other words, you pay for what you get, but that doesn't necessarily mean it's straightforward. This fee may be in the form of a percentage of your assets, typically 1-2%, an hourly rate, or a flat fee. Although fee-only is preferable, it doesn't guarantee transparency, affordability, or value.
   

2. Fee-based: Financial professionals using this structure may receive additional compensation through commissions on products or services they sell you. Avoid these at all costs, pun intended.

The two types of fees mentioned above will be in addition to investment-level fees. In other words, mutual funds, ETFs, cryptocurrencies, and other investments have their own fee structures.

Your financial professional should be able to clearly explain investment fees and also help you minimize them by recommending low-cost options. Inability or unwillingness to do so is a red flag.

Although I'm biased, paying for financial guidance makes sense for most people, especially those facing financial challenges; however, the pricing structure should be straightforward, honest, and fair – qualities that seem too rare in this industry.

If you are looking for a financial coach and planner who maintains transparent, reasonable, and honest pricing, then take your first step below. For less than $5/day, Walk You To Wealth is the most affordable way to access professional help.

Disclaimer: The information in this post is provided for your convenience only and is not intended to be treated as financial, investment, tax, or other advice. The information is intended to be educational and is not tailored to the investment needs of any specific individual.  It is also not intended to be relied upon as a forecast and is not an offer or solicitation to buy or sell any securities or to adopt any investment strategy.  The opinions expressed are those of the author.  Reliance upon the guidance and information in this presentation is at the sole discretion of the individual.