As a newcomer, the world of investing and financial planning can feel overwhelming. Yet, most people find their way over time. However, how you begin this process and who you partner with are incredibly important factors that affect your experience. For many novice investors, the ideal partnership involves a fee-only financial planner. Read on to learn more.

More Opportunities

Traditionally, fee-based planners, which are the opposite of fee-only planners, are employed by large financial institutions. As employees, one of the main goals of these planners is to persuade their clients to take advantage of the financial products their employer offers because they often earn a commission off these transactions. 

Unfortunately, this type of arrangement limits the investor to certain opportunities, which can stifle their ability to learn more about the wide range of investing opportunities. Being able to learn is very important for those new to investing. Fee-only planners do not have these sorts of attachments. 

Tailored Guidance

Large financial institutions also require their fee-based planners to promote specific packages or programs. These ready-made investing proposals put each person on a one-size-fits-all plan for wealth building, which is isn't as effective as it could be. Each person needs tailored guidance, as the amount of money a person plans to invest and their goals for wealth management can vary drastically from the next person. 

Without the demands of company policy, a fee-only planner is able to offer each client tailored guidance. For someone who is still trying to learn more about investing, tailored guidance is an excellent way to manage risks and losses.

Personalized Costs

Fee-only financial planners provide a luxury that is often hard to come by in any service-based business arrangement — the ability to set your own cost structure. Fee-based planners have set fees based on the type of investments and planning assistance you want. With a fee-only planner, you determine how you pay. 

For example, if you want complete asset management, you pay the advisor a percentage based on the total value of the funds they manage. However, if you require less involved services, you can arrange to pay the planner an hourly rate. Whatever the combination, for someone new to investing who may not know exactly what they want just yet, this flexibility is a major advantage. 

It is your money and your future. Take your time to find a fee-only financial planner that feels right for you and your goals.