Fee Based Advisor
Benefits of a Fee-Based Financial Advisor
Fee-based financial planners are registered investment advisors with a fiduciary responsibility to act in their clients’ best interest. They do not accept any fees or compensation based on product sales. Fee-based financial planners/financial advisors have fewer inherent conflicts of interest, and they generally provide more comprehensive advice. The fee-based financial advisor does not receive a fee or other compensation from another party based on the referral of a client or the client’s business. Fee-based advisors help reduce the conflicts of interest inherent in how they get paid and what they recommend.
The fees of commission-based agents and brokers are tied to specific products and transactions. This model completely misses much of what clients need. Although even commission-based agents can serve their clients in unique ways, product commissions seem a backhanded way to acquire comprehensive wealth management.
Fisher Financial Group planners structure our primary fee structure around managing all of a client’s financial affairs. Many of the services we perform for clients depend on an integrated financial plan that goes beyond investments. Trying to answer one issue in isolation can be difficult. Our services strive to be more holistic.
Additional Advantages of a Fee-Based Financial Advisor
Another advantage of a fee-based financial planner is that there are no financial hooks, surrender charges or lockup periods. Clients are free to leave at any time if they are disappointed. It is also why we give away as much do-it-yourself information as we can. We want consumers to be as informed as possible about good wealth management techniques.
We primarily charge a percentage of assets under management because of our emphasis on offering comprehensive wealth management. But fee-based financial planning includes other methods of charging clients such as a flat retainer, an hourly rate or a charge specific to the task at hand.
For managed clients, we purposely don’t add any hourly rate. We do not want clients to hesitate to contact us. If there is an hourly charge many clients won’t call even when they should.