December 13, 2014

When a financial advisor states he is a fee-based advisor, what is he telling you? Is this good?

3 thoughts on “December 13, 2014”

  1. Brennan Haag says:

    A fee based advisor can charge both a fee and a commission unlike a fee only advisor who only charges you a fee. Fee based advisor make money based on what they sell you so they have a conflict of interest. They might sell you something that is not a good investment on your part but will make them money. A fee only advisor does not have a conflict of interest and tries to do what’s best for you.

  2. Garrett Haag says:

    Fee-based is not a good thing, a fee-based adviser still works off of commissions and fees. That individual works for a holdings company and sells their product and gets payed off of what they sell. They have a conflict of interest to sell the most expensive product to you that gets them they best pay off. You are better off using a fee only planner if you need one. The best route to take is to be your own planner and learn how to do the stuff yourself and use Vanguard and other sources to make your own investments and financial decisions.

  3. Mike Finley says:

    Well said, gentlemen. Let’s review.

    Fee-based advisors (most of the industry to include your local financial advisor, life insurance agents, and investment brokers) are stuck in a system where conflicts of interest abound. They are paid commissions from multiple sources that cost the individual high yearly fees to pay out those commissions. This business model works very well for them and the many “bosses” they work for, but not for the client. YOU!

    If you need help beyond what you can do for yourself, identify a fee-only financial advisor/planner by going to and typing in your zip code. In the meantime, start educating yourself on this matter by reading The Greatest Investment Book You’ll Ever Read by Daniel Solin, Winning the Loser’s Game by Charles Ellis, The Four Pillars of Investing by William Bernstein, Common Sense on Mutual Funds by John Bogle, and a Random Walk Down Wall Street by Burton Malkiel. Awake to the possibilities!

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