Does fee-based advising make sense? At the end of the day, I believe it boils down to philosophy. Many advisors, like myself, have decided that a business model that requires transparency and trust is just the right thing to do.
It should be about more than making a sale. A fee-based advisor has a fiduciary responsibility to always do what’s in your best interest. Does a transaction-based advisor have similar motivation? Perhaps.
Transaction-based advisors depend on selling you a product in order to receive commission regardless of how your portfolio performs. Of course, every advisor is different, but knowing the financial motivations driving the transaction-based model is just smart business.
My interests are your interests. The fee-based advisor focuses on maintaining a long-term relationship with you and your investments.
I always feel a sense of partnership and collaboration when I’ve been able to help a client prepare for their financial future, as opposed to just selling an investment product here and now. As a fee-based advisor, I have the same goal as you: growing your assets. We both succeed when that happens.
Fee-based works best for me. I offer clients just like you the choice of a fee-based relationship because it’s what's best for them and also true to my philosophy as an advisor.
My conscience and my ethics have guided me toward this business model – and through it, I believe I can provide the absolute best guidance to my clients.
The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
Value of a Fee-Based Advisor
August 23, 2023