The Indispensable Role of a Financial Consultant in San Antonio

Even the most affluent individuals with significant assets are not immune to the uncertainty of today’s volatile economy. This means safeguarding your wealth requires a deep understanding of financial markets, economic trends, tax codes, and retirement planning – an intricate puzzle not everyone can solve on their own. This is where a financial advisor in San Antonio can play an indispensable role. 

This blog is intended to help you determine how a financial advisor in San Antonio can help you pursue financial independence while ensuring your financial plan is aligned with your core values and long-term goals. We will cover three primary topics that impact which financial advisors you select to help you:

  • Why is working with a financial advisor an important decision?
  • How are financial consultants compensated?
  • How does Biblically Responsible Investing align with your personal beliefs?

Read our latest Quick Guide: “How to Choose the Right Financial Advisor in San Antonio.”

 Why is working with a financial advisor an important decision?

A financial advisor is a professional who holds a position of trust and is legally obligated to always act in your best interest. 

The importance lies in the ethical commitment to always put your financial interests above their own, thereby ensuring that their financial strategies and advice are always aligned with your goals, values, and preferences. 

The role of a financial advisor becomes even more critical when you consider the fluctuating swings of the global economy. Unexpected events, changes in financial markets, tax law amendments, and other unpredictable elements can drastically impact the achievement of your goals. The advice of a financial advisor who has a deep understanding of your financial situation and is committed to helping you achieve your goals becomes a crucial member of your team.

This is critical because the consultants’ advice impacts your decisions, which impacts the number of assets you will have available for your future use. This can significantly impact decisions that impact your net worth, lifestyle, financial security, and well-being late in life when you need it the most.  As a high-net-worth individual, you need a duty-bound professional who can provide conflict-free financial advice.

Get to Know PAX Financial Group: We have formed a team of genuinely enthusiastic financial professionals who care about investing in your future. Our team includes CERTIFIED FINANCIAL PLANNER™ professionals, Accredited Investment Fiduciaries ®, and insurance specialists, all ready and willing to cater to your distinct requirements.

How are Financial Consultants Compensated?

Compensation for financial consultants is a crucial topic often glossed over by investors. Understanding how your financial consultant is paid can help you make informed decisions about your financial plan and ensure that you receive objective, unbiased advice that aligns with your financial goals.

In a fee-based business model, financial consultants charge a fee for their advice and services, which can take several forms:

  1. Hourly or fixed fee: The client pays the advisor’s time by the hour, like a CPA or attorney. Or a flat rate for a specific service. For example, a financial consultant might charge a flat rate to produce a comprehensive financial plan.
  1. Asset-based fee: This is a percentage of a client’s total assets under management (AUM). For example, if the client has $1 million under management and the advisor charges a 1% fee, the client would pay a $10,000 fee each year. This fee is usually charged at the beginning or end of each quarter.

What needs to be added to the above descriptions? The payment of commissions that third parties pay financial advisors for selling their products. The source of the product commission could be a bank, insurance company, or mutual fund family that employs, licenses, or has contracted with the advisor.  

Consultants who provide advice for a fee are held to a higher ethical standard that always puts your interests first. The fee-based model is often seen as providing more alignment between the financial consultant and the client’s interests because the success of your assets impacts the consultant’s compensation.

In a commission-based model, the financial advisor is compensated with the commissions to sell particular products. The companies that pay the commissions include mutual fund families and insurance companies. Third parties pay the commissions.  The commission is usually a percentage of the value of the product sold.

Commission-based consultants are held to a suitability standard that differs from the fiduciary standard.  Under the suitability standard, a financial advisor or broker only needs to make suitable recommendations for a client based on their financial situation, objectives, and risk tolerance. The definition of suitable can vary by advisor.

For instance, an advisor under the suitability standard could not reasonably argue that a risk-averse client should invest heavily in high-risk securities.

Moreover, the suitability standard does not require the advisor to put your best interest ahead of their own. They can recommend products or strategies that earn them higher commissions or otherwise benefit them personally if these recommendations also suit your interests.

Opting for a fiduciary, fee-based financial advisor in San Antonio ensures that the advice you receive aligns with your goals rather than the advisor’s compensation method. This arrangement promotes a transparent, objective relationship between you and your advisor, a cornerstone of successful wealth management.

Get to Know PAX Financial Group: Our goal is to support our clients in achieving their life objectives beyond merely the financial dimensions. We focus on the following: 

  • Having authentic, honest dialogues with our clients
  • Supporting not just your financial assets but you as an individual 
  • Proven wealth management approach 
  • Upholding honesty, openness, and responsibility 
  • Acting in clients’ best interests
  • Transparent and uncomplicated fees

How does Biblically Responsible Investing align with your personal beliefs?

Another factor to consider when selecting a financial consultant in San Antonio is whether they support Biblically Responsible Investing (BRI). BRI is an investment strategy that aligns financial decisions with Biblical values. This approach screens out investments in businesses that contradict Christian principles and focuses on companies that promote ethical and moral business practices.

Many individuals and organizations want to align their investment strategies with their religious beliefs. If you’re one of them, a financial consultant who understands and supports BRI can be a valuable asset. San Antonio financial consultants who offer BRI investment practices help you grow your wealth and ensure that your investments contribute to a cause you deeply care about.

Get to Know PAX Financial Group:  As your wealth grows, it’s important to have a partner who embodies fiduciary responsibility and aligns with Judeo-Christian principles. Are you searching for a wealth management team that can act as your financial stewards? We invite you to connect with us

This material is provided by PAX Financial Group, LLC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The information herein has been derived from sources believed to be accurate. Please note: Biblically Responsible Investing(“BRI”) involves, among other things, screening for companies that fit within the goal of investing in companies aligned with biblical values. Such screens may serve to reduce the pool of high performing companies considered for investment. Investing involves risk. BRI investing does not guarantee a favorable investment outcome. PAX Financial Group has conducted due diligence for their Biblically Responsible Investing (BRI) process and proudly serves as each client’s advocate using fully vetted third-party specialists for the administration of BRI methodology. Past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax, or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product and should not be relied upon as such.

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