Fee-only Financial Planners: Everything You Should Know
Fee-only financial planning is in high demand in India. The unique feature of fee-only financial planners is that they charge fees for the services they offer to the clients.
This is conclusive evidence that the financial planner works in a fiduciary capacity, providing unbiased and conflict-of-interest-free advisory.
You will find that all SEBI Registered Investment Advisors work on a fee-only model. This gives them an edge over those advisors who in the name of advisory sell products involving high commissions.
In this article, let us understand about fee-only financial planners and how they are different from commission-based advisors and whom should you choose for your financial planning.
Fee-only Financial Planners vs. Commission-based advisors:
Fee-only financial planners are those professionals whose only earnings are in the form of fees they charge from the clients. All investment advisors registered with SEBI provide advisory services on a fee-only basis.
But it might not be the case that all SEBI Registered Investment Advisors (RIAs) are financial planners. They can be stock brokers, PMS managers, mutual fund advisors, etc. But, financial planners are those professionals who not only deal with or manage investments but provide comprehensive financial advisory looking at each and every aspect of personal finance be it insurance, investments, loans, taxes, estate planning, etc.
As per SEBI rules, advisors who are registered with SEBI cannot work on a commission-based structure. Even if they do, they have to separate the fee-based and commission-based clients. In other words, SEBI RIAs cannot earn both fees and commissions from the same client.
On the contrary, there are advisors who earn only commissions from the products they sell and are somewhat biased in recommending investment products, and may not provide comprehensive financial planning services. These are basically agents and distributors, not advisors.
SEBI has prohibited these commission-based people from using the words “advisor”, “planner”, “consultant”, etc. with their name or the firm’s name.
Why you should choose a fee-only financial planner?
In the past, all financial products have in-built commissions, received by the person selling/advising them. But now things have changed.
Now-a-days, there are no-commission-based (direct) plans available in almost all financial products, and the person advising these plans does not get any sort of commissions from the product manufacturers.
SEBI Registered fee-only advisors are regulated by SEBI and have to mandatorily advise these no commission-based direct plans. The only earning of these advisors is the fee directly paid by the client.
Fee-only financial planners are responsible for acting as fiduciaries and providing unbiased and no conflict of interest advisory. They do not push you for any product purchase. You only pay for the financial plan, financial advice, or asset management.
Fee-only financial advisors work on different fee models depending upon their services. Some work on a fixed-fee model while others charge variable fees based on the level of engagement or the complexities involved.
But, you should not decide which fee-only financial planner to choose for your financial planning only on the basis of the cost. You should always do a cost-benefit analysis and see whom to engage with for your overall financial wellness.
How to find Fee-only Financial Advisors in India?
To find a fee-only financial advisor in India, you need to visit the SEBI website. The link to the same is- https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=13
You can choose among them based on your requirements. Once you filter some names, do visit their website to learn more about the background, mission, vision, and service offerings.
In order to understand the thought process and whether this person or the firm would fit your requirements or not, schedule an appointment with him or her to discuss things in detail.
Before scheduling the appointment, make sure that you have the list of questions ready that you are going to ask the planner and choose the one best fits your requirements.
Good Moneying Financial Solutions: One of the best Fee-only Financial Planners in India
If you are looking for a fee-only financial planner for your comprehensive financial planning and investment management, Good Moneying Financial Solutions is one of the best fee-only financial planning firms in India.
The principal financial planner at Good Moneying, Mr. Manikaran Singal is one of the very few financial planners who are registered with SEBI as an investment advisor and provide fee-only financial planning services.
He has 17+ years of experience in the financial advisory industry catering to clients of various profiles ranging from salaried persons, entrepreneurs, professionals, retired, and NRIs.
Having the experience of handling clients of different domains, ages, and income groups, with different requirements, and goals shows that he is well-equipped with the tools and techniques to create suitable financial plans for them to comfortably achieve their financial and life goals.
Mr.Singal and team Good Moneying always assume a fiduciary role and always keep the client’s interest at the forefront while providing financial advisory services. That is the reason Good Moneying is today trusted, in other words, is responsible for the financial well-being of more than 100 families.
Summing Up:
Financial Planning is the need f the hour and fee-only financial planners like Good Moneying Financial Solutions are the highest grade professionals whom you can trust with your finances.
They are just like your family doctors who in the beginning need time to understand you, and the family and then guide you towards long-term financial well-being.
