February 13th, 2013 Admin | February 13, 2013 What is the difference between a fee-based financial advisor and fee-only financial advisor?
3 thoughts on “February 13th, 2013”
A fee-based financial advisor receives fees from the invester AND also can receive commissions from the company that they work for.
A fee-only financial advisor only receives fees from the investor, they do not receive commissions from selling you products. This means that they aren’t directly looking out for themselves and their own pocketbooks, but are looking out for YOU.
A fee-based financial advisor gets a fee or commission from the stocks, bonds or annuities that he sells to you. A fee-based advisor sells you what will earn more money for you which I believe he gets a percentage of.
Great job, ladies. Leah really nailed it, though. Fee-based is what many if not most financial helpers are today. They earn their money in multiple ways (commissions from the products they recommend, a percent of the money they manage, hourly fees, etc.). Fee-only advisors are in limited supply and in almost all cases they require a large chunk of money before they take you on as a client. How big? $250,000 and up would be a good estimate. That means the average person is stuck. Right?
No, they are not. The average person must become their own financial advisor until the financial industry changes how they do business (they are more focuses on making money for the firm, then the advisor, and finally the client gets what is left). Good news. You can do it!
Read every document on this website. Review each video. Finally, start reading from teachers and stop listening to salesmen. This website is full of teachers. Start today by reading Personal Finance for Dummies, by Eric Tyson. He will help you find your way.