They don’t take commissions from insurance or security products. On the surface, fee-only advisors sound like the perfect fit. They sound pretty similar, right? Well, they’re actually quite different. For example, consider these two terms: fee-only and fee-based. In many cases, this can impact the type of advice and service you receive.įrom the outside looking in, the terminology used to describe payment structures is confusing. And as the client, it’s important that you know upfront how your advisor is compensated. Not all financial advisors get paid the same way. Understand How Your Financial Advisor Gets Paid A fiduciary advisor has an implied commitment, ethically and legally, to offer the best value option for the client’s situation (not their own). This practice of putting the needs of the client first, also known as a Fiduciary Duty, is a key principle when it comes to working with clients' finances in any form. “This means they have received appropriate education on financial planning, and abide by a set of ethical standards that puts the client's interests first.”
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“The first step is to ensure that your Financial Advisor is backed by a professional standards body, such as the International Association of Registered Financial Consultants (IARFC), and that they recognize them as a Registered Financial Consultant,” Bettermann says.
And his advice to people, whether they choose to work with him or not, is always the same. As the co-founder of Thorngate Financial, an organization that specializes in helping families safely plan for their retirement, he’s seen both the good and bad sides of the industry. Jeff Bettermann, Registered Financial Consultant (RFC), is a financial expert with 20 years of industry experience.
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