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Fee-Only Financial Planning Objective
Unbiased Advice

Overview

A Fee-Only Advisor is defined by NAPFA (National Association of Personal Financial Advisors) as an advisor who is compensated solely by the client with neither the advisor nor any related party receiving compensation that is contingent on the purchase or sale of a financial product.  Neither a NAPFA member nor related parties may receive commissions, rebates, awards, finder’s fees, bonuses or other forms of compensation from others as a result of a client’s implementation of the individual’s planning recommendations.  “Fee-offset” or fee based arrangements, 12b-1 fees (see below), insurance rebates or renewals and wrap fee arrangements that are transaction based are examples of compensation arrangements that do not meet the NAPFA definition of Fee-Only practice.

Fee-Only Compensation is of critical importance as the advisor is not dependent on commissions or other forms of compensation based on their client acting on their recommendations.  Since such compensation creates an inherent conflict of interest and cannot be considered objective and unbiased.  This is true even if the advisor truly believes that he/she has only the best interests of the client at heart.  Surprisingly, the vast majority of financial advisors in the United States are sellers of financial products.  Some or all of their income, such as in a fee-based, or compensated arrangement, may be dependent upon their ability to steer their clients to a limited number of the thousands of financial products available today.

Even if you put aside the conflict-of-interest factor, the limiting of choices, in and of itself, often is enough to impact the quality of the investment advice.  These advisors (sellers) include stockbrokers, analysts, insurance agents, some accountants and some attorneys, and most financial planners.  Most of their clients are not aware of their advisors’ dependence on and often obligation to selling products, or do not recognize its significance in relation to the execution of their financial plan.NAPFA believes that many of the problems that beset Americans today in their financial affairs – including the mismanagement of debt, failure to protect retirement assets and poor allocation of savings and investments – relate directly to the conflicts of interest that pervade the marketplace.A Fee-OnlyAdvisor, on the other hand, provides peace of mind that they are objective, unbiased and free from any conflicts of interest.  They have access to thousands of no-load and low-load products and also to many discounted services.  They are not limited to company-sponsored offerings or obligated to sale-driven opportunities.12b-1 Fees:  Fees mutual funds charge to promote sales of the fund’s shares through advertising and marketing programs.

Fees

Your planning cost will be determined and based on factors such as: complexity of your financials situation; your financial goals; composition of your income, assets and liabilities; completeness of the information provided and our involvement in implementing our recommendations.

Generally the cost is a fixed retainer. If you prefers, the cost can be based on an hourly charge (generally $250.00 per hour) or value of your assets. Our experience is that client participation is increased when the cost is fixed at the start of our relationship.

A portion of the cost will be paid before any services are performed. The balance is payable when recommendations and observations are presented. Depending on the specific agreement, additional fees may apply as the plan is implemented. All of which will be fully disclosed before-hand.

The agreed fee arrangement will be reflected in a written Agreement prior to the services being performed.

The minimum comprehensive financial planning fee is $2,200.
The minimum project-based financial planning fee is $250.

Financial Planning costs for consulting and are based on an agreed hourly rate. Our current hourly rate is $250.

The hourly rate will be reflected in a written Agreement prior to the services being provided.

Portfolio Management Services costs are also provided on a fixed retainer. The cost is based on factors such as: complexity of your financials situation; your financial goals; composition of your income, assets and liabilities; completeness of the information provided and our involvement in implementing our recommendations.  Fees may be negotiated based on unusual and unique individual circumstances.  All fee arrangements will be reflected in a written Agreement.Investment Analysis Services fees are determined based on the complexity of the situation, nature of assets and related factors. The fee can be determined based on: the value of the assets, hourly charge, or fixed fee basis as mutually agreed to with the client prior to the services being performed. A retainer of 25% of the estimated fee, if in excess of $1,000, will generally be required before the services are performed. The balance will be due when the service has been provided.

The agreed fee arrangement will be reflected in an Agreement prior to the services being performed.

The minimum fee for investment analysis services is $250.

KNOWING YOUR PLANNING FEES UPFRONT CAN MAKE ALL THE DIFFERENCE.

CALL 847-328-8011 TODAY TO DISCOVER THE DIFFERENCE
A FEE-ONLY ADVISOR CAN MAKE.