Frequently ‘Unasked’ Questions:

Why do you charge a flat fee?

Many firms charge a percentage of assets managed and throw in “financial planning” for free.  There’s an inherent conflict when an advisor’s pay is tied to assets managed. The advisor must manage a client’s assets to make money. What if you want to buy rental property, purchase a second home, or custody your assets in multiple locations? We feel that a fee tied to net worth eliminates this worry. Another reason is to avoid a product driven sales mentality.  Our advisors do not have product sales goals to meet because we don’t have products to sell you.

How much am I paying currently?

If you’re with a Registered Investment Advisor, add up the fee that you pay your advisor and the underlying investment fees to see the total. This can include the quarterly/monthly advisor fee, underlying expense ratios for mutual funds or ETFs, or transaction costs to name a few. If you’re working with a broker, add up year-to-date transaction costs, loads for funds, and annuity fees to name a few. We’d be happy to help you calculate this if you’re unsure where to look.

What is the difference between a broker and a Registered Investment Advisor?

Typically, brokers work on commission based on the products they sell (think mutual funds, stocks, and bonds as an example). In most cases, RIAs will charge a fee for a service (think a percentage of assets managed).  It’s possible, though, that your representative is paid to sell a service for an RIA versus provide the service directly.

What does fiduciary mean?

There are many interpretations of what it means to act in a fiduciary capacity.  We keep it simple.  As professionals, we provide prudent advice that: is in your best interest, avoids misleading statements, and is priced reasonably.