You will also be called upon to update this data at least once each year. Financial planners can have experience in many fields, including accounting, law, banking, life and health insurance, casualty insurance, finance, business management, taxes and investments. Expenses for investment and tax planning are deductible, as itemized expenses, subject to limitations - IRS Section 212. After your situation has been analyzed and recommendations made, you will be able to compare clearly your present financial condition with what is projected for the future. The long range benefits should far outweigh the costs.
Planners generally charge a fee in order to provide an objective analysis.
Yet clients will still pay commissions when they buy stocks, bonds, insurance policies and annuities. Since there are commissions associated with the sale of nearly all financial or insurance products the financial planner may also receive additional compensation in the form of commission on the ale of these specific products. Some planners still rely solely on income generated from the commissions when clients buy stocks and bonds, and use the plans as a way of generating sales. A small group of planners charge fees only and handle no products at all.