Independent Salt Lake City Financial Advisor Communicates Difference Between Fee Only and Fee Based

Aug. 27, 2009 - PRLog -- Fee only financial planners never accept commissions or compensation from the products they recommend. They are compensated only by their clients and their compensation is the same regardless of the products they recommend. This compensation structure enables fee only planners to truly represent their clients rather than an insurance or brokerage firm signing their paycheck. Consequently, they can focus on doing what is in the absolute best interest of their client without worrying about maximizing their own compensation. Finally, most fee only financial planners have a fiduciary responsibility to always do what is in their client's best interest. Working with a fiduciary is critical.

Fee based financial planners have the ability to collect fees from their clients, but they also have the ability to collect commissions from the products they sell. Thus, fee based planners may charge the client a fee for managing assets, but may also collect commissions from a mutual fund that charges the client ridiculously high fees. Additionally, fee based advisors have the ability to collect commissions from selling insurance and annuity policies which may not be the best fit for the client. Finally, many fee based advisors are only held to a suitability standard, meaning they agree to act in a way which does not harm the client.

To view the rest of the article, visit http://utahfinancialadvisor.blogspot.com/2009/08/what-is-....

About Mr. Jefferies

Lon Jefferies is an investment advisor representative with Net Worth Advisory Group, a fee-only financial planning firm in Salt Lake City, Utah. He is a member of the National Association of Personal Financial Advisors (NAPFA) and a candidate for CFP™ certification. He possesses an MBA and bachelor's degrees in Finance and Marketing from the University of Utah. Lon writes articles for local magazines such as Business Connect and Utah Business Magazine, and he consistently contributes articles to online magazines such as FIGuide.com and FILife.com (by The Wall Street Journal). Additionally, Lon is a platinum expert author at EzineArticles.com. Lon has been quoted nationally in publications such as the NY Times and Investment News.

Contact Info

View Lon's blog at http://www.utahfinancialadvisor.blogspot.com, and visit Net Worth Advisory Group's home page at http://www.networthadvice.com. Lon can be emailed at lon@networthadvice.com, or phoned at (801) 566-0740.

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Fee-Only Financial Planner
Net Worth Advisory Group
6975 Union Park Center, Suite 465
Midvale, UT 84047