What is the difference between a fee-only financial planner and a fee-based or a commission planner?

Are financial planners regulated?

What materials do I need to bring to the initial meeting?

How long does it take to get a financial plan completed?

What if the planner is not able to help with my financial problem?
 

What is the difference between a fee-only financial planner and a fee-based or a commission planner?

Fee-only planners do not sell products such as insurance, mutual funds, or stocks. They charge by the hour or by the plan. Some planners will also manage your money for a percentage of the assets. After finishing a financial plan, if clients of Benjes & Benjes, Inc. wish to work with a money manager they are referred to professionals who have public, long-term, superior track records.

Instead of charging for their advice, commissioned planners often sell products for a fee. They can also offer services and products in exchange for a certain percentage of your assets each year. For more elaboration on different types of planners, see Improve Your Finances.

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Are financial planners regulated?

Certified Financial Planners are. They are required to follow ethical and professional guidelines set by the CFP Board. Violations can lead to censure or revocation. To find out how Certified Financial Planners differ from others, who call themselves financial planners, you can obtain a brochure titled "CFP: Mark of Quality" from this web site on the Request Info page. Or go to The Financial Planning Association web site. In addition, planners who recommend investments in Texas are required to be Registered Investment Advisors, and are regulated by the Texas State Securities Board.

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What materials do I need to bring to the initial meeting?

It is not necessary to bring any materials. In fact, if you decide to proceed with a plan, the planner will give you a questionnaire to fill out. The questionnaire is quite thorough, as the intent is to gather all pertinent financial data. The purpose of the initial meeting is to get acquainted with the planner and to express your financial concerns. The planner will have many questions, which will include goals, time horizons, and risk tolerance. You can review a Sample Plan in order to see what you can expect. At the conclusion, the planner will be able to tell you how she can help and what the cost will be. There is no charge for the initial meeting.

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How long does it take to get a financial plan completed?

This depends on three factors, 1) how quickly the client returns the completed questionnaire, 2) the complexity of the plan, and 3) how busy the planner is at the time. For example, if the questionnaire is returned within one week, on most occasions the planner can complete her analysis within two weeks. However, if a deadline is looming or more urgency is required for some other reason, it is important to tell the planner at the initial meeting.

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What if the planner is not able to help with my financial problem?

Occasionally the planner will refer you instead to a specialist, such as an estate attorney or a CPA with expertise in a particular area. Diane Benjes does not receive any referral fees, whatsoever. Referrals are only made to people with known competency in particular areas, and with whom the planner's clients have had positive experiences.