Why use a fee-based advisor?
A fee-based advisor receives fees for advice and for portfolio management instead of receiving a commission on the products he or she sells. The advisor receives fees based on a percentage of assets under management. We want our clients to be assured that our investment recommendations are as conflict-free as possible. When an advisor is compensated in a direct manner with full disclosure, it reduces conflicts of interest that often accompany advice you might receive in the course of buying a financial product (e.g. a mutual fund or insurance policy) through a commission-driven consultation. A great advantage of fee-based advisors is that advisory fees can be substantially less costly to a client than a commission, and the advisor has a continued interest in the process of meeting goals.
