By Ryan Paulin

Investment Advisor Fees differ for the type of financial planning service rendered, who renders it and in what sort of compensation set-up the client and financial planner have agreed to follow.

There are various types of compensation mode for investment advisors. There are those who are paid by commission, fee-only basis, fee-based and a mixture between a commission and a fee.

Investment advisor fees based on commission are usually computed from the account that financial planners handle for you. This is also known as transactional payment because the advisor is not paid by bottom line growth but by every transaction or trade that they have successfully transacted for you.

The problem with this kind of financial planner who is commission-based is that they tend to have conflict of interest. They are paid based on the investor that they get for you. This is not advisable since this can get you in financial trouble or that you may not get the investment advice that you deserve.

There are also financial advisors that are paid by means of a residual fee. This is based upon a certain percentage of the overall worth of the assets that they manage for you. The more the assets increase, the financial advisor is paid higher fees. This is a good set up since it encourages the financial planner to work harder. Investment advisor fees under this mode of compensation are based on their account performance.

Investor advisor fees can also be based merely on the professional consultation given by the financial planner. This kind of financial planner does not charge on terms of capital assets they handle for you but rather paid by the hour of by session a client visits them for certain financial issues.

Of all the three modes of compensation, investor advisor fees that are computed based on the account managed is the best since it promotes a long term relationship with the financial planner. But any mode that you feel comfortable with will also work out if suitable for your financial goals. Find a good financial planner that can help you realize your financial goals. An expensive fee does not always mean competence. Check for experience, integrity, track record and clientele of a financial planner before you shell out thousands of dollars for an advice that you really do not need.

The next question you might ask is whether or not investment advisor fees are worth it. The answer is definitely yes because first of all financial planners are experts in this field and consulting with them will save you from a lot of time, money and headache. Since financial planning can be very complex, it is wise to seek the services of in investment advisor.

In planning for you future just make sure that you are getting the most out of the investor advisor fees that you are paying. Consider the qualifications, fees and trustworthiness of your financial planner before investing in them. Always remember that it is your money and investments that are on the line so do your investigation and research on the current market trends. Never settle for a compensation mode that you are not comfortable with.

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