Are you properly planning for your retirement? The reality is that most people in America aren’t doing enough to prepare for life after retirement. The average 50 year old person has just over $40,000 saved for retirement. This is alarming considering that many experts believe that if you expect to draw $5,000 per month assuming a 6% annual return on your investments and 2% inflation, you’ll need to have bit more than 1 million dollars saved at the time of retirement. While you may or may not need 30 years worth of retirement savings, it’s best to plan for it. At Dunncreek Advisors, we’re fee-only financial advisors who are focused on looking out for your best interests at all times. In this blog, we’ll go into why it’s so important to work with a fee-only financial advisor.
Why is a Fee-Only Financial Advisor so Important?
A fee-only financial advisor is different than other investment advisors because they have a fiduciary responsibility to act in your best interests. Not all financial advisors are always acting in your best interests, but fiduciaries, or fee-only financial advisors must or else risk losing their license.
Some financial advisors receive commissions in exchange for steering their clients into certain investment options. While these investments may not be inherently bad, it’s difficult to not realize the conflict of interest that can exist between an investment advisor and their client when the advisor is receiving significant commissions for promoting certain investments.
When you work with a fee-only financial planner, the fee structure is always completely transparent. You typically are charged a small percentage of your overall assets under management. This fee will not change and allows your advisor to only promote investment choices that make the most sense for you. In fact, if you think about it, it’s in the best interest of a fee-only financial provider to grow your portfolio because their fee will naturally go up. This is in stark contrast to commission based investment advisors who aren’t necessarily driven by your portfolio’s success.
Interested in Learning More About Fee-Only Financial Advisors?
We hope you’ve learned a bit about the importance of a fee-only financial advisor when it comes to the success of your retirement. If you’d like to speak with one of our advisors, feel free to reach out to Dunncreek Advisors today by phone at 612-436-3770 or via email at rdunn@dunncreekadvisors.com. We’d be happy to sit down with you to determine if a working relationship would be beneficial.
Dunncreek Advisors does not provide legal or tax advice, nor is this article intended