Fee-only financial advisors 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-only advisors have fewer conflicts of interest, and provide more holistic advice. There are different types of financial advisors in the industry. We operate as a fee-only wealth management firm and this is why we believe it’s the best way to conduct ourselves:
Fiduciary, fee-only advisors are required to put their clients needs before their own. Fiduciary advisors are held to a “duty of care” and continually monitor their client’s investments and evolving life. On the opposite side of fiduciary is what’s called suitability standard, which brokers are held to. Currently brokers are still allowed to operate under a suitability standard but only until they have to declare themselves as a fiduciary under the Department of Labor ruling. Suitability means that the broker only has to prove the product purchase to a client was suitable for that client at the time of purchase. Brokers receive commissions on the products they sell. In many cases, brokers will meet with a client one time to determine what is “suitable” for them, and start and finish the relationship in one meeting. For a fiduciary financial advisor, the first meeting is only the start of a comprehensive financial plan that both the advisor and client will constantly work on executing.
Fee-only financial planning is often described as holistic. Holistic financial planning is the process of meeting your life goals through the appropriate management of your resources. During this holistic process, your advisor will get to know you and your financial picture. As a team, you will define your life goals and get a better understanding of your lifestyle and aspirations so your advisor can develop a comprehensive plan to keep you on track for your goals. Under one roof, you can expect cash management, accumulation of retirement assets, life and health insurance planning, education funding, tax planning, retirement income planning, and more. Many people enjoy having the many resources under one roof available to them.
We don’t receive commissions
Depending on the financial advisor, there are many different ways fee-only advisors can charge their clients. Because your advisor is paid by you, you can feel certain his obligation is to you. Fee-only advisors do well by doing well by their clients. Paying your advisor for the services they provide to you ensures your receiving objective advice in your best interest and not from someone trying to sell you something for their own financial gain. Fee-only advisors can structure their fees in many different ways, often unique to the client, and including, management fees, hourly, project based, or retainer fees.
Another benefit from working with a fee-only advisor is that there are no financial marketing hooks, surrender fees, or lockup periods and the client is free to leave at any time their not happy with the services being provided to them. At True Measure we operate as fee-only. We believe that this is an ethically better environment to conduct our business affairs and strive to provide clients comprehensive care. We want you to be informed about wealth management and involved with your financial planning. It is our aim to achieve your goals together and be your support system to success.