#1 Best Fee Only Financial Planner in Florida
Choosing to work with an investment professional who can provide holistic financial planning is an important decision that will affect all aspects of your financial well-being, today and in the future.
Why you may need a fee only Financial Advisor?
Often people have an idea there is a “magic number” they need to save for retirement to be a reality.
While savings goals are great, the ability to retire is much more closely tied to a different number: Monthly Expenses!
As clients approach retirement, discussions about cash flow become more prevalent and important.
It’s not uncommon for people to think they will spend significantly less in retirement.
However, an increase in expected monthly expenses by even $100-300/mo can have a significant impact on how long your “magic number” will last.
If you find yourself approaching that finish line, make sure you’ve started thinking about your spending. Consider the following common retirement expenses:
- Travel:How much and what type of travel do you hope to do? Primarily domestic or international, first class or economy, visiting family or 5-star hotels?
- Housing:Planning to relocate closer to family? Ready to downsize to a one-level you can age in? Looking to add a second home somewhere warm for the winter?
- Medical Expenses:What type of premiums will you be paying both before and after Medicare? Do you have any conditions that are likely to progress and require care? Do you have Long Term Care insurance to help protect your assets should you need care?
- Vehicles:Planning to buy that new retirement vehicle? Looking to upgrade to get all the new safety features?
- Hobbies:Now that you will have more time on your hands, what types of hobbies will you begin to enjoy and how expensive are they?
Starting to think about what retirement looks like for you is critical to knowing whether the “magic number” you’ve worked for can provide the lifestyle you want in retirement.
It’s possible either the number will change, or your expectations of spending may need to be adjusted.
9 COMMON QUESTIONS Financial Planning
- Do I have enough money to retire?
- Will I run out of money while in retirement?
- What are topics and other areas that I might not be aware of or that I should know about going into retirement?
- How should my portfolio look going into retirement compared to when I was saving for retirement?
- Which pension option should I take?
- When should I take Social Security?
- Is my money invested correctly?
- Do I need long term care insurance? How much does it cost?
How to find a good fee only financial planner in Florida
Advisers play different roles for different people, depending on their needs and circumstances.
Many think their role is to pick stocks, pick funds or time markets, but those are decidedly not part of a reputable adviser’s skill set.
Instead, the good ones help investors set and work toward goals, plan for life’s surprises, engage in constructive behaviour modification, and maintain accountability with things like regular saving and setting up a financial plan for the kids.
Ideally, financial advisers handle more than just investments. They provide financial planning and motivation to keep clients on track.
Let’s assume you started investing early, have a perfect portfolio and can stick with your investing plan. Perhaps you’re self-employed, with a stay-at-home spouse and three children. You get into a car accident, your spouse dies, and you’re in a coma for three years. Now what?
A financial plan addresses all the risks that affect your finances, not just those in the stock market. While investing can be a grand hobby for some, estate planning and insurance planning rarely are.
Being capable of opening a discount brokerage account and executing your own trades is not the same as being qualified to manage your personal finances. Many people manage their own investments but still need help with financial planning. More need help with both.
Florida Financial Planning Fees and Commissions
Commissions vs. fees
There’s a difference between commissions and fees in financial services, although the terms are often used interchangeably. Fees are payment for a service rendered for a client and originate from the client. Commissions are payments based on transactions or products. They originate from a product manufacturer like a mutual fund or are triggered by a transaction such as buying or selling a stock.
Fee models for Financial Planning
Fee models come in two flavours: asset-based and fee-for-service.
Asset-Based Fees: The asset-based fee model is set as a percentage of a client portfolio. If you had a $500,000 portfolio with an annual 1% fee, each year $5,000 is deducted from your account for advice and execution. The charge is transparent, so clients see this figure in writing. They write a cheque or have fees deducted from portfolio cash balances. Product costs are separated.
Fee-For-Service: The pure fee-for-service model is relatively rare. Quite simply, fees are charged either by the hour or by the project on a flat-rate basis. Hourly fees may run between $250 and $300 an hour. A flat rate for a financial plan and investment policy statement (IPS) ranges from $1,000 to $5,000. Fee-for-service is also offered by a newer category of financial advisers known as money coaches. Money coaches tend to focus more on financial behaviour, and work on a more intensive basis for a contracted period of time. They can also develop financial plans, but do not sell securities.
The fee-for-service model is the most transparent, most unbundled methodology. You can engage an adviser for investment advice or financial planning advice, or both. Execution is separate and often not even an option. This works wonderfully for investors who can execute on their own via discount brokerages and engage other professionals such as lawyers and insurance agents as necessary. But again, being capable of handling one’s own trades with a discount broker does not mean one should necessarily handle one’s own trades.
What Does “Fee-Only” Financial Planner really mean?
Technically speaking, costs incurred from either of these models are classified as fees, not commissions.
Fee-only” refers to advisers who receive fees originating directly from the client, be it through hourly or flat-rate charges, or fees charged on a percentage-of-assets basis. Within the fee-only classification, an adviser may use either or both of a fee-for-service model or a fee-based mIt considers fee-only advisers to be those who offer either the fee-for-service or percentage-of-assets model.
The bottom line is that while fee-only financial advisor is a step in the right direction it does not come without its faults. In the end, it is up to individual investors to seek out an advisor that is best suited to their own needs. In many cases the potential objectivity and unbiased advice provided by a fee-based financial planner can be worthwhile, but at other times the more traditional route is a better fit.
Mintco Financial Florida Fee Only Financial Planning
Whether you’re an individual planning for retirement, a business owner reviewing company pension options, parents hoping to put your kids through college, or retirees looking forward to traveling, when you work with Mintco Financial you receive financial advice tailored to your unique situation and goals.
Financial advice isn’t just about investment recommendations. From taxes to insurance to estate planning, your financial picture has a lot of moving parts.
When you work with Mintco Financial, you’ll collaborate with our team of investment, financial and retirement planning experts. Through different alliances we’ve made in the community, you’ll also have access to the experts you need to resolve any financial issue or clarify any goal.
Are you ready to have a conversation?
Schedule your complimentary meeting at
813-964-7100