How do financial planners get paid?(1 point) Responses on the basis of fees or commissions on the basis of fees or commissions with a retainer with a retainer with a pre approved budget with a pre approved budget pro bono

Answer 1

Financial planners can get paid in a variety of ways, including:

1. Fees: This can include hourly fees, flat fees, or fees based on a percentage of assets under management (AUM).
2. Commissions: Some financial planners earn money through commissions on the products they sell, such as insurance policies or investment products.
3. Combination of Fees and Commissions: Some planners may use a hybrid model where they charge fees for their services and also earn commissions from products sold.
4. Retainer: A retainer fee is a regular payment made to secure services over a period of time.
5. Pre-approved Budget: Some planners may work within a pre-approved budget, charging based on the services rendered within that budget.
6. Pro Bono: Some financial planners may offer their services for free (pro bono), typically in specific situations or for individuals in need.

Ultimately, the payment structure can depend on the planner's business model and the services they provide.