How Do Financial Planners Get Paid?
Updated: Feb 24, 2022
Why Use a Financial Planner?
When it comes to finances, it can sometimes be challenging to know where to begin when saving. There are plenty of questions one must ask themselves when looking to save; however, the process can be much easier if not smoother if one were to consult with a financial planner.
Financial planners can assist their clients in looking at both short and long-term goals and their current financial status. Taking these factors into consideration allows financial planners to work with their clients and develop the best saving and spending solution.
What Benefits Come with a Financial Planner?
Money can be a sensitive subject for many, yet when it comes to discussing future goals and what one wants to save for, this is a much easier subject. The reality is that for one to maximize their savings, whether aggressive or knowing their best options, working with a financial planner is the route to go.
Here are a few other benefits that come with working with a financial planner.
Access to resources – While the world wide web does provide a wealth of resources, financial planners have access to information that is not necessarily available to the public. If the financial planner works for a financial institution, such as a bank, they may be able to provide certain offers or work with you in customizing one of their products or services.
Knowledgeable – One works with top-rated wealth advisors in Pittsburgh PA because they are looking to work with someone who understands money and their needs. Financial planners are not only knowledgeable, but they typically can then translate their knowledge into a way that they can help explain it to the clients to understand what they do and how their money is being saved, etc.
Accountability – When one doesn't have anyone to be accountable for, especially when it comes to savings, one is more likely to sway from their goal. With a financial planner, an individual can stay on track through accountability. As a neutral party, they can provide experienced guidance and correct possible bad spending habits. How? Financial planners can showcase various financial scenarios to their clients, which can sometimes help put things into perspective.
Support – No one wants to see you succeed quite like your financial planner. When you work with them and set financial goals, they want to ensure you can achieve these in a way that is comfortable and attainable to your lifestyle. Sometimes, having someone support you and guide you through the process can be highly beneficial.
These are a few of the benefits that come with an experienced and knowledgeable financial planner.
Paying a Financial Planner
While a financial planner helps clients make and save money, one may wonder where and how they get paid?
Financial planners make their income and revenue one of two ways, through commission or set fees.
When a financial planner makes their earnings through commission, if one makes money, they too earn money. Financial planners paid through commission can make commission either through fees or through a percentage of the returns for their clients.
Depending on the financial plan that the client has, the commission is going to vary; for example, there are transaction commissions, which are typical for financial planners who deal with investments based on the stock market.
With a commission-based income, the financial planner may earn more or less depending on their clients' performance of their investments.
As a financial planner who earns a salary, this typically means that they work for a bank or company that can provide financial stability and compensation. The misconception with a salary is that this is the only source of income for the financial planner; however, depending on the financial institution and the type of investments the planner deals with, they may be eligible for commission and or bonuses.
Bonuses are something that a financial planner can receive regardless of commission or salary based as much of the work of a financial planner is heavily set on performance; therefore, if they perform well, they are rewarded for it.
Get Investing with Kelley Financial Group
Regardless of your financial goals, whether you are a seasoned saver or looking to get aggressive with your saving plan, the Kelley Financial Group is ready to help. At the Kelley Financial Group, our knowledgeable team works with our clients rather than for them, because we understand that when it comes to saving money, that is personal and unique. Start saving today with Kelley Financial Group.