What’s fee-only mean to me?
As a fee-only firm we don’t receive compensation from brokerage firms, banks, mutual fund companies, or insurance companies. Our only compensation comes from our clients, so it eliminates the commission-based conflict of interest. It also means we’ll work to reduce your investment costs instead of trying to build in hidden costs to inflate a commission.
Doesn’t that mean I’ll pay more?No. In fact you will most likely pay less than working with a commission-based advisor. Because we’re able to use institutional-class shares of mutual funds that aren’t available to retail investors, that’s just one way we can save you money. What’s more, in the mutual fund area, we only use no-load funds, and the resultant transaction costs for our clients are minimal.
So, no sales commissions and possibly lower costs. Anything else?Yes. Registered Investment Advisory firms owe a fiduciary duty to their clients; that is, their client’s interests must come first. Stockbrokers and other commission-based financial advisors are only required to sell you a “suitable” investment. Of course, as our clients are our only source of income, it’s very easy for us to put their interests first.