By The Galecki Financial Management Team
If you’ve taken time out of your busy schedule to explore financial advisors, you’ve likely encountered the term “Fee-Only.” Often associated with registered investment advisors, it’s an important factor to think about in your search for financial guidance.
But what exactly does “Fee-Only” mean, and why should you consider this in your decision?
Let’s dive into what it means to be a Fee-Only financial advisor and shed light on why we at Galecki Financial Management in Fort Wayne, Indiana, take immense pride in embracing this single, powerful phrase.
What Does Fee-Only Mean?
Fee-Only financial advisors are paid directly by their clients. They don’t receive any types of kickbacks or commissions for recommending certain securities or investments.
The National Association of Personal Financial Advisors (NAPFA) believes Fee-Only financial advisors are the most transparent and unbiased advisors you can come by.
Fee-Only advisors are typically either registered investment advisors or CERTIFIED FINANCIAL PLANNER™ professionals. This is because both types of professionals require a fiduciary duty, which means they are obligated to put the client’s best interests first.
How Are Fee-Only Advisors Paid?
There are a few different ways Fee-Only advisors get paid. Some popular methods include:
- Hourly. You pay a fixed amount based on the number of hours your advisor spends meeting with you.
- Flat fee. This is similar to the hourly method but you pay one flat fee no matter how many hours you spend meeting with your advisor.
- Percentage of assets under management (AUM). You pay a percentage-based fee depending on the value of your investments.
What Are the Benefits of a Fee-Only Advisor?
If you’re in the market for a financial advisor, here are three reasons why you should choose a Fee-Only advisor:
1. No Conflicts of Interest
No matter how pure an advisor’s intentions are, it can be hard to provide unbiased recommendations when they know they’ll get a kickback or commission. But this isn’t the case for Fee-Only advisors. They have no incentive to push certain products because they don’t sell any products at all. They’re solely compensated by you.
2. They’re Fiduciaries
Fee-Only advisors are fiduciaries, which means they’re legally and ethically required to act in your best interest at all times. They’re loyal, quick to disclose any conflicts of interest, and only give advice based on your unique situation and goals.
3. You Get Objective Advice
It’s easy to act on emotion when dealing with your own money. There’s talk of a stock market crash, so you want to change your investing strategy. A family member needs to borrow money, even though you know giving it to them would jeopardize your financial security. You want to live a comfortable life in retirement, but you’re not sure if you’re on track.
In situations like these, it’s nice to have someone you can go to for objective advice.
Why Galecki Financial Is Fee-Only
At Galecki Financial Management, our primary focus is on our clients. Our experienced Fort Wayne financial management team specializes in comprehensive Fee-Only financial planning which includes: cash flow analysis, estate planning, life, disability, and long-term insurance needs, tax planning, retirement planning, and advising to help you confidently pursue your financial goals. We provide our services on a Fee-Only basis rather than earning commissions—our commitment to transparency and objectivity is at the core of what we do.
Whether you have a particular financial issue to address or are seeking comprehensive financial planning, our team is here to give you guidance throughout your journey. To take the first step, reach out to our office by calling (260) 436-8525. Your financial well-being is our top priority.
About Galecki Financial Management
At Galecki Financial Management, we help individuals and families confidently pursue their financial goals. We’re anything but a business-as-usual wealth management firm. We’re different. Friendly. Casual. And really good listeners. Indeed, that’s a big part of what makes us different. Everything we do is based on what we hear from you, because our experienced team of professionals specializes in comprehensive financial planning, cash flow analysis, IRA rollovers, financial services, money management, estate planning, retirement planning, and advising. We help you identify your short- and long-term goals, and then we work together to pursue them. Lastly, and most importantly, we’re fee-only, meaning we’re only compensated for our time. Our only incentive is to help you succeed.