If you are considering working with a financial advisor,
you should expect that your advisor will place your interests
first when helping you structure your financial future.
Unfortunately, this is not always the case, as many financial
advisors profit by selling you investments that earn them
hefty commissions. Before you choose an advisor, ask yourself
- Do you want to work with advisors that have a vested
interest in steering you towards products that increase
their income?
No
Conflicts of Interest – Fee-Only
Financial Planning |
Fee-Only advisors do not accept any compensation
that doesn't come directly from the client. Fee-Only
planners do not accept commissions or compensation of
any kind from anyone based on the products that they recommend.
This allows Fee-Only advisors to keep your
interests in mind at all times, avoiding the inherent
conflicts of interests that accompany sales commissions.
Fee-Based
is NOT the same as Fee-Only |
Fee-Only is NOT the same as Fee-Based;
and the distinction between the two terms is absolutely
critical. Fee-Only is a compensation method used
by independent advisors and recommended by an overwhelming
percentage of consumer advocates and financial planning
journalists. Fee-Based is a confusing term for
compensation schemes used by stockbrokers that used to
be called "fee plus commission" or “fee
offset.” Contrary to popular belief, they are NOT
the same.
| Here is the short version of the difference: |
Fee-Only Planners do not sell products
or take commissions.
Fee-Based Planners CAN and DO sell products
and take commissions! |
With a Fee-Only Planner, you don't have to
worry that your planner is making recommendations in
order to generate additional fees. You are guaranteed
complete disclosure of all fees ahead of time. It’s
the best way to be sure that your advisor is working
solely in your best interest, and is unequivocally on
your side.
Cambridge Southern Financial Advisors are Fee-Only
advisors and are wholly dedicated to meeting your needs
and helping you and your family achieve your life goals.
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