How to Find a Fee-Only Financial Advisor in Utah
If you are looking to hire a fee-only financial advisor in Utah, you’ve come to the right place. Perhaps you’ve been told by a friend or family member that when it comes to financial advisors, “fee-only” is the way to go. Or maybe you’ve seen the terms “fee-only” or “fiduciary” mentioned in the media.
Either way, you’re off to a good start. Fee-only financial advisors are required to act in your best interest. In addition, they typically seek to establish trusting, long-term relationships with their clients - instead of transactional sales relationships that are common in most of the financial industry.
Marketing Tactics or Truly Aligned Incentives?
But where do you find these so-called fee-only financial advisors? Many advisors seek to brush over the topic of fees or avoid the discussion at all. Even the CFP Board has recently removed compensation method from their list of financial advisors – surely a move prompted by pressure from commission-based advisors.
At the same time, because the term “fee-only” has received a good deal of media attention and promotion from trusted experts like Suze Orman, Jason Zweig, and Jane Bryant Quinn, many financial advisors who are not truly fee-only are nonetheless using the term on their websites and marketing materials.
In fact, years ago a study was done that asked 288 financial advisors in the Greater Washington D.C. area if they offered fee-only financial advice. More than two thirds claimed they did. However, after further investigation, in reality only 19 were true fee-only financial advisors.
Bottom line: don’t just take someone’s word for it.
Fortunately, there are some well-established networks that vet their advisors and only accept advisors who are 100% fee-only. In order to find a qualified, fee-only financial advisor whose services align with your needs, this is a great place to start.
Networks Where You Can Find Fee-Only Financial Advisors
NAPFA
NAPFA is the country’s leading professional association of Fee-Only financial advisors—highly trained professionals who are committed to working in the best interests of those they serve. Since 1983, Americans across the country have looked to NAPFA for access to financial professionals who meet the highest membership standards for professional competency, client-focused financial planning, and Fee-Only compensation. Members of NAPFA subscribe to a strict fiduciary oath and code of ethics. In addition, NAPFA members are required to fulfill significant continuing education requirements.
NAPFA provides a convenient “Find an Advisor” tool on their website that will help you locate a fee-only financial advisor in your area. You can access the tool here:
https://www.napfa.org/find-an-advisor
Fee-Only Network
FeeOnlyNetwork.com is a partnership with The National Association of Personal Financial Advisors. FeeOnlyNetwork.com showcases the expertise of their advisors and promotes consumer awareness of the fee-only financial advisor model. Like NAPFA, they have a tool to help you locate a fee-only financial advisor near you:
https://www.feeonlynetwork.com/
XY Planning Network
The XY Planning Network is the leading organization of fee-only financial advisors who offer services to Generation X and Generation Y clients. Their mission is to connect consumers with best-in-class financial advisors who specialize in working with clients from diverse backgrounds. Members of XY Planning network are required to hold the CFP® designation and act as fiduciaries to their clients. If you are part of Gen X or Gen Y and looking for financial guidance, XY Planning Network is a great place to look. You can search their advisor network by location or specialty here:
https://www.xyplanningnetwork.com/
Utah Financial Advisor Network
Last but not least, the Utah Financial Advisor Network is a select group of independent, fee-only advisors committed to helping Utah investors get unbiased, expert advice. Like the networks above, members of the Utah Financial Advisor Network are all fee-only, hold the CFP® designation, and provide holistic financial advice. What sets members of this network apart is that they all live and work right here in Utah. You can find our advisors here:
https://utahfinancialadvisornetwork.com/
Choosing a Financial Advisor
Now that you know where to find a fee-only financial advisor, the next question is how to select from your short list. Our page on Choosing Your Advisor outlines several important factors to consider, like the advisor’s specialization, credentials and services. Now that you have narrowed down the list and weeded out the bad apples, you can turn your attention to more individual needs.
Are you just starting out and looking for guidance on student loans? There are advisors who help with that.
Are you approaching retirement and seeking guidance in making the transition? There are advisors for you too.
Lastly, you want an advisor who you can connect with. Ideally, this is someone who you will be forming a close and trusted relationship for many years. You want someone who you feel comfortable communicating with and who understands you.
Fortunately, most fee-only advisors will offer a complimentary introduction to get to know you and answer any questions you have. Again, because they are looking for a long-term relationship, rather than a quick sale, they want to make sure there is a good fit before moving forward.
Like Finding a Needle in the Haystack
Finding the right financial advisor is no easy task. Did you know there are over 7,000 registered brokers and investment advisers in Utah? (Not all that surprising given that the bar to register as a broker is incredibly low: one 6-hour test and a background check) And that doesn’t even include insurance salesmen and others who may call themselves “financial advisors”.
With all the smooth-talking salesmen out there, it can be difficult to distinguish between those who are competent and will truly act in your best interest, and those who have ulterior motives.
Fortunately, you know to look for a fee-only financial advisor. And now, you know where to find one. Using these vetted lists, you can feel confident that you are dealing with qualified and trustworthy advisors to help guide you on your financial journey.
About the Author
James Sweeney, CFA, CFP®
is a fee-only financial advisor specializing in retirement planning, tax-efficient investing, and high-income professionals. He lives in Lehi, but works virtually with clients throughout the state of Utah and the country.
