For those who seek professional investment management, the most important decision they will make is the individual or organization with whom they choose to work. A quality Fee-Only Financial Advisor must realize the significant degree of discretion, trust and confidence that is involved in the advisor/client relationship. They must make it a priority to continually earn your confidence and respect.
No Commissions
Reputable Fee-Only advisors align their goals with yours. Rather than charge commissions on individual transactions and charge separate fees for other services, a fee-based managed account lets you know up front what your fee will be. The fee is based on the value of the assets in your portfolio.
Wise Fee-Only managers specialize in building portfolios with low-cost, no-load mutual funds and Exchange Traded Funds. You thus have access to a broadly diversified portfolio tailored to your personal risk tolerance, goals and investment horizon, and it is professionally managed on an ongoing basis at a very low cost.
Fee-Only investment firms should be a Registered Investment Advisory firm that has built its business by offering prudent advice and good service, and by relying on our clients to refer their friends and family (with most firms referrals are rewarded).
Investing Requires A Steady Approach - Take The Emotion Out Of Your Portfolio
If there is one thing that the last few years have shown, it is that markets are unpredictable, and guiding your portfolio through turbulent times requires experience, patience and vigilant management. Fee-Only financial management must be committed to helping you meet your investment goals through sound advice and diligent oversight of your investment portfolio, customized to meet your individual goals and structured around your risk tolerance. Because investing involves a number of risks that are often impossible to predict, Fee-Only financial advisors moderate these risks by diversifying each portfolio across multiple asset classes to improve its risk-reward characteristics. Using a combination of in-house and independent third-party analysis, Fee-Only advisors will build a dynamic investment strategy and then select mutual funds that meet stringent criteria and that are aligned with your goals and needs. Ongoing due diligence of both the broad markets and your individual holdings will help ensure that your investment strategy stays on track.
With A Fiduciary, Your Interests Come First - Responsibility In Serving You Is Clear
Fee-Only financial advisors embrace their role as a fiduciary, a responsibility that means they must always act with your best interest in mind. As a fiduciary, they are different from traditional personal financial advisors who are brokers. It’s a distinction that benefits you.
* Unlike a broker, Fee-Only advisors are not typically licensed to sell you securities and are not salespeople.
* They are a Registered Investment Advisor and only sell you their advice.
* You need not worry about hidden fees or a hidden agenda because typically, as an RIA, they are required by law to fully disclose any conflicts of interests they might have in serving you.
* These financial advisors earn their fee not by charging you commissions on securities trades like stockbrokers, but by levying a fee for ongoing money management.
* You avoid the conflict of interest that arises when a broker receives better commissions by selling you one product instead of another or makes money by making more trades in your account.
* Fee-only financial advisory firms do not accept fees from third-party product providers.
The Freedom Of Choice - Independence Is Its Own Reward
It has been my experience that independent advisory firms are not pressured by a parent company to direct you into their proprietary products. Fee-Only independent firms have the freedom to choose the financial products that are best for you from the wide universe of products that the financial services industry has to offer. Unlike traditional stockbrokers, they are not employed by a Wall Street firm. They are an independent advisory, with a business model that allows them to find solutions suitable for you.
Independence Matters - They Work For You
You need an advisor you can trust. Check to see if your Fee-Only Financial Advisor is registered with the local state Department of Corporations as a Registered Investment Advisor. Choosing to practice as an RIA demonstrates that they want to provide you investment advice as a fiduciary, which by law requires them to always put your best interests first when advising you on investments. Not all advisors are RIAs, but some have taken this extra step so that you can rest assured that their advice is objective and based exclusively on your personal goals. There are no hidden fees, and your fees are their only source of income. Period. Thus, their singular motivation is your success.
A quality Fee-Only financial advisor likes to stick with a rational investment plan that reflects the individuals time horizon, their goals, and their appetite for risk. We feel these are the keys to long-term success.
Source: http://www.ArticlePros.com/author.php?Brad Vollstedt
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