I assume you mean a Certified Financial Planner.There are three types of investors:1) the investors who want to do it themselves (DIY). They learn about investing and find the best way that works for them.2) The investors who want professional advice. These investors don;t know what they are doing, or at least they are smart enough to know that they don;t have the time or the interest to do their own investing.3) The investors treat their investments like a casino. They don't learn about investing and don't seek financial advice.
Vanguard is for people who want to do it themselves.Fidelity fits in this DIY model too, but they also have financial advisorsCertified Financial Planners could be described as professional financial advice. Typically these professionals are fee-only planners who provide financial advice for a fee. They are advisors who have a fiduciary duty to their clients.
The pros of Vanguard and Fidelity and other discount brokerage firms (Etrade, TD Ameritrade, Scott Trade, etc) are the low fees. If you are a DYI then this is the place for you. you should lower your fees as much as possible.
The Cons are that you don't get any advice or guidance. Most poeple can benefit from advice, even the pros.
The Pros of using an Investment Advisor are that you get an unbiased professional providing you financial advice. They can provide you with a detailed financial plan that includes very complex areas like: ISO stock options, restricted stock, Self Directed IRAs, tax planning, estate planning, and more.
The Cons are that it is more expense than using a discount broker. However if you are buying a mutual fund at your discount broker, that fund may be more expensive than a fee-only planner if you are investing directly in stocks, bonds, options and other investments with the planner. Some mutual funds have fees that range from 1- 2%. Many financial planners charge ~1%.
One other pro of using an investment advisor is that they can provide you with professional advice in areas that you may not have thought of. Like investing outside the stock market with your IRA or 401k. Are you aware that you can invest your IRA into real estate, horses, tax liens, private mortgages, intellectual property, private company stock, oil & gas LPs, farmland, and more? This type of advice will not come from a discount broker.
If you wantto learn more about self directed IRAsand how they can help you, this is a good resource.
I hope you found this helpful
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