There are many things to consider when deciding what type of financial advisor to work with. One of the big differences between advisors is how they charge their clients. Two of the most common advisors are fee-only and commissioned based. When comparing fee-based and commissioned financial advisors, a person should weigh out all of the pros and cons of both types of advisors.
Fee Based vs. Commissioned Based
A financial advisor who is only compensated by fees is known as a fee-only advisor. Fee only advisors can charge a flat retainer, an hourly rate, or a percentage of assets that are managed by the advisor. In comparison, a financial advisor who is compensated by commissions is known as a commission-based advisor. Commission based advisors are typically compensated by the products they sell. SO the question is...do you want to work with an advisor that is unbiased with their advice or do you want to work with an advisor who is paid to sell you something?
Fee-Only Advisor Pros
Fee-only advisors are held to the highest standards and almost always operate as a fiduciary. A fiduciary has a legal obligation to give advice that in the client's best interest. When choosing a fee-only financial advisor one of the benefits is that you will not worry about a conflict of interest. This removes the questions of whether a recommendation is in the best interest of the client or the advisor. Another benefit is that many fee-only advisors are financial planners well. Fee-only financial advisors can offer you an objective opinion of your entire financial situation. These services might not only include investment management of your portfolio, but also address other financial questions you may have or maybe even a full financial plan.
Choosing a Fee-Only Financial Advisor
At Frisch Financial our team of experienced fee-only financial advisors works together to help you with what you need. We offer a wide range of services, which include hourly services, portfolio advice and ongoing investment services. Choosing an advisor to help you with your financial needs is an important decision. If you have any questions about our services, please call. We would like to have the opportunity at Frisch Financial to serve your financial planning and investment management needs.