Popular Journalists Hail the Benefits of Fee-Only Financial Planning and Investment Management 

Five Seasons Financial Planning is proud to be a member of the National Association of Personal Financial Advisors (NAPFA).  Members of NAPFA are committed to providing consumers with professional, objective Fee-Only financial advice.  In recent years, the national media have increasingly touted the benefits to consumers of this business model.  Here is just a sampling of recent press coverage:

Glenn Ruffenach, Wall Street Journal, June 17, 2007 ~ "I know I want a "fee-only" adviser and not a "fee-based" adviser. (There's a big difference; the former tends to have fees that are easier to understand.) And I know I want an adviser who acts as my "fiduciary," who puts my financial interests ahead of his or her firm's.

(All financial advisers are not created equal: certified financial planners, brokers, insurance agents and "financial counselors" can have very different obligations and agendas. Failing to understand these distinctions is asking for trouble.)

This means I start by looking at groups like the National Association of Personal Financial Advisors (napfa.org), Cambridge Advisors (cambridgeadvisors.com) and the Garrett Planning Network (garrettplanningnetwork.com), which can direct me to fee-only advisers in my area."

Jeff D. Opdyke, Wall Street Journal, May 23, 2007 ~ "For savers with modest assets, Ms. Roper [director of investor protection for the Consumer Federation of America] says, a fee-only planner is generally the best match. These planners only sell their time, at a cost of between $100 and roughly $250 an hour, depending on where they're based geographically. Because they don't pitch products tied to a particular company, "it minimizes the potential conflicts," she says."

Terri Cullen, Wall Street Journal, June 23, 2004 ~ “As for finding a planner, one caution: Don't hire a salesperson. Investment brokers, life-insurance and variable-annuity agents, and other so-called financial advisers who work for, or are paid on commission by, financial-services companies are there to sell product. Your best interests come second to their bottom lines. Instead, seek out an objective fee-only financial planner, who is paid hourly or by a percentage of your total portfolio. You can start your search by contacting friends or professionals you know and respect for referrals, or get in touch with one of the networks of fee-only financial planners..."

Jonathan Clements, Wall Street Journal, February 2003 ~ “I know this will garner me a truckload of hate mail. But let’s be blunt: You never want to pay a broker or financial planner with commissions. If you go that route, the adviser has a huge incentive to stick you in products that generate the fattest commissions and to cajole you into buying and selling, because that’s how the adviser makes the most money.”

Jonathan Clements, Wall Street Journal, February 2003 ~ “Fee-charging financial planners were supposed to save investors from the evil clutches of the brokerage industry. There is just one problem: Many of these advisers only seem to be interested in rescuing the rich. If you hunt around, you can find savvy financial planners who will manage modest sums for a reasonable fee. If you buy four or five hours of a planner’s time, at maybe $150 an hour, you should be able to get a suggested portfolio of no-load funds, plus some pointers on how much to save, what to do with your kid’s college savings, how to handle your debts and whether you have adequate insurance.”

Jeffrey R. Kosnett, Kiplinger Personal Finance, April 2003 ~ “Most planners still sell commission-charging mutual funds, partnerships, annuities and insurance. But as a client, you don’t have to buy a product or pay a commission; you may choose instead to pay a yearly retainer, a percentage of your assets or even an hourly rate for periodic checkups."

Jonathan Clements, Wall Street Journal, April 11, 2004 ~ “Many people assume their best bet is to sign on with one of the big brokerage firms. But in my experience, often the brightest and most thoughtful advisers are at smaller financial-planning shops, so don't be put off if an adviser works alone or with just one or two others. To find these smaller outfits, check out www.feeonly.org and  www.garrettplanningnetwork.com. Next, check that your potential advisers have a clean record with securities regulators, by going to www.sec.gov/investor/brokers.htm on the Web. Also look for advisers who are forthright about costs, including not only their fees, but also the fees charged by the investments they will recommend. I would lean toward advisers who levy an annual retainer, an hourly fee or a percentage of assets, and I would be leery of those who charge commissions.

Marshall Loeb, CBS MarketWatch, August 28, 2003 ~ The public should demand more fee-only planners, says personal finance writer, Marshall Loeb. “To eliminate the conflicts of interest that arise from commissions, it’s a good idea to look for a fee-only planner,” says Loeb. “It’s up to the public to demand more planners who have no financial incentive to recommend one product over another,” says Joel Framson, chairman-elect of the American Institute of CPAs Personal Financial Planning Executive Committee. “…firms that sell products can never be a true fiduciary to the client,” said Framson. Consumers “need to demand the true fee-only kind of approach with compensation that is not tied to any commissions or referral fees.”

"Finding a Financial Adviser Who Won't Sneer at Your Little Nest Egg"