Wealth management makes many people anxious. How can you know that the people you trust your finances to will make good decisions? How can you be sure that they will not try to convince you to make investments or other financial moves that will only enrich them, without benefitting you?
If you are uncertain about who to trust your wealth management to, consider working with a fee-only investment advisor in San Antonio, TX. Here’s why:
Why Choose a Fee-Only Investment Advisor?
When a person or group manages your personal wealth, you want them to be knowledgeable and reputable. You also want them to have as few conflicts of interest as possible. Unfortunately, many financial groups cannot promise the latter.
Many organizations that offer wealth management services also sell financial services to third parties. This means that they cannot provide fair and objective advice on how to protect and deploy your wealth.
Working with a fee-only investment advisor will prevent this since their fees come directly and only from their consumers. This prevents conflicts of interest and is the most transparent way to work with a financial professional.
What is the Difference Between Fee-Only and Fee-Based?
You may see wealth management professionals advertising their services as being fee-based. This is different from fee-only services. That similar terminology can lead to confusion and mistakes made by consumers who do not know the difference.
Fee-based typically receive both commissions and advisory or management fees. The commissions on financial products that they sell to consumers can be substantial, far outpacing the direct fees they make for their advisory position. Since they are both an advisor and a salesperson, conflicts of interest can arise when managing clients’ wealth.
If you want the fairest, most transparent, and most objective approach to wealth management, your best bet is to opt for fee-only advising. Always be sure to verify that your advisor is working on a fee-only basis. This way, you will know that they will make the best possible choices for your money and your financial future.
