Based on data obtained by the National Association of Personal Financial Advisors (NAPFA), there are some 315,000 financial advisors in the United States. They come in all shape and sizes. Some sell products, some sell advise, and there is everything in between which makes a consumers job of choosing an advisor very difficult and confusing. You never really know what you are getting, do you!
But, here is some information that might help make things a little simpler and get you to the right advisor when you go searching. Of the 315,000 advisors in the US, 30,000 are NOT dually registered which means they can both sell you products and advise – an inherent conflict of advice in our minds. That’s less than 10% of advisors! There are 69,000 Certified Financial Planners in the US as well of the 315,000 total count. But, while we have a high respect for CFP’s, many of them choose to sell insurance, annuities, and other products that pay sales commissions. Only about 6,000 CFP’s are FEE-ONLY, meaning they can’t earn commissions! Further, only 2512 of the 315,000 advisors (that’s less than 1%) are members of NAPFA, the national association home to firms who operate just like we do.
So, next time you are faced with an important financial decision and need objective advise, look at a NAPFA advisor who can’t also sell you something. There aren’t many of us out there, but, you will be glad you found a fee-only advisor when you do. Visit www.NAPFA.org today!