While compensation is necessary when choosing a financial advisor, it’s not the only factor to consider. At our firm, we believe that excellent and trustworthy professionals can be found across all compensation structures in the financial industry. However, we believe it’s easier for advisors to recommend the best solutions for their clients when their compensation aligns with their client’s best interests.
While commission products can offer viable solutions, we do have some concerns with the fee structure. In particular, we don’t like that the fees associated with these products are often complicated and can be left off statements, leading some clients to believe they’ve received free financial advice mistakenly.
It’s important to understand the different types of fees that financial advisors and financial companies can charge.