The world of financial advice is divided into 3 main categories. The traditional financial advisor is what most people are familiar with. This is the most common arrangement where a financial advisor works for an institution and sells product. The financial advice is given «free» and is part of the process of selling these products. The second category of advisor is called a fee-based financial advisor. This type of advisor does the same thing as the traditional advisor, but charges a flat percentage fee based on the assets managed rather than by product. The cost can be less but still can add up over time because the fees are based on a percentage of the assets you have. The advice is still part of the service and is «free». The last option is a fee-only or fee for service financial planner. This type of planner only gives advice and does not sell product. The charge for the advice is a flat dollar amount based on how much time is spent or how complicated the project is.
