Businesses use consultants to provide “objective advice and assistance relating to the strategy, structure, management and operations” of their organization.  Consultants are paid to analyze the business, a project the business is considering (like expanding to new territory), or a situation it is in (such as selling a struggling division) and to make recommendations on how the business should proceed.   

The business gets the benefit of the consultant’s expertise without committing to the ongoing relationship of hiring the consultant as a full-time employee.  When the consultant’s project is complete, the two parties go their separate ways.   

 

Did you know it is possible to hire a consultant for advice and assistance with your personal finances? 

Most people get advice from a financial advisor who is actually a salesperson of insurance, annuities, mutual funds, and other products.  Or maybe they get advice from someone in related field like a CPA or lawyer who offer advice as a side business.  

The best way to get personal financial advice; however, is from a financial advisor who functions as a consultant.  You can hire a financial consultant to analyze any issue you are having with your finances.  A majority of our clients hire Andrew Marshall Financial, LLC to objectively analyze their retirement readiness and create a plan for safely providing retirement income. 

Financial advisors who practice in a consultant style are known as “fee-only” advisors. 

Fee only advisors charge fees for their consultant work, they do not charge commissions.  Fee only advisors often call themselves financial planners to distinguish themselves from commission based financial advisors.  

You can find these financial planners through industry associations like the Garrett Planning Network and the Fee Only Network. 

The biggest benefit of hiring a consulting personal financial planner is the coalignment of goals between you and the consultant.  A consultant will give you the best possible advice for your situation because they are not encumbered by the outside motivations of sales commissions. 

Before hiring a financial advisor, determine what their motivation is.  A financial advisor employed by an insurance company or investment company (like Merrill Lynch, Morgan Stanley, Fidelity, Vanguard, etc.) has sales managers above them who make sure the advisor is selling a certain number of contracts every month.  You don’t want to be one of those sales targets.   You want the advice of an objective consultant (fee only financial planner). 

By hiring a financial planner as your personal consultant, you will get an objective advisor who puts your best interest ahead of their own.