How are Financial Planners compensated and is there one model that is better than others?
Planners are compensated in a variety of ways, including fee only, commission, a fee/commission blend and salaried. Each method of compensation has its merits, depending on a prospect’s age, lifestyle, and financial situation. There is no right method. What is important is that the prospect clearly understands how a planner is compensated and any real or potential conflicts of interest that may exist. Armed with that information I believe a prospect can focus on the planner’s competence as the primary consideration in their selection process.
