What is the difference between fee-based advice and commission-based advice?
Fee-based advice is very different from commission-based advice, and it is important that you understand how your advisor is being paid. If an advisor is paid on commissions it is normally an up-front fee, and the amount depends on what product the advisor is recommending for sale. For example, commissions (or “loads”) on “A” share mutual funds are typically several percentage points, and commissions can vary widely from fund to fund. In contrast, a fee-based advisor is not influenced by the commission amount, so the fee-based advisor can objectively select the investments that are aligned with your goals. Emerson is a fee-based advisor, and we receive no commissions on transactions, so our interests are aligned with you, the client.
