With the increased focus on planning for retirement and on-going wealth management, now more than ever, investors need a comprehensive approach to financial planning through prudent, customized, and unconflicted recommendations. Unfortunately, comprehensive financial planning is a promise many so-called advisors talk about but few can reliably deliver. For many, the independent, fee-based registered investment advisor is increasingly being seen as the favored choice.
The Trend Towards the Fee-Based Model?
In addition to the growing importance of working with a fiduciary is the desire by investors to move away from the commissioned-based compensation model towards a strictly fee-based structure. Financial-service companies are not blind to this trend and have realized their customers want objective advice, but the companies aren’t ready to abandon their commission-based sales model or commit wholeheartedly to the fiduciary standard. The movement to fee-based advisors is redefining the way investment advice is delivered and what consumers expect from their financial advisers.
Fee-based or Commission-based: You Decide
When deciding how to choose a financial advisor it makes sense to ask yourself the following questions. How you answer these questions will help you identify your needs, and expectations, for your financial advisory relationship:
- Do I want an advisor who is legally obligated to act in my best interests at all times? If so, is the advisor willing to put that in writing? Anyone who purports to uphold a fiduciary standard should be willing to stand behind that claim.
- Do I want my advisor to disclose all potential conflicts of interest? A fiduciary should be willing to disclose any relationship, compensation, incentive or other factor that potentially could interfere with his or her ability to act in your best interests.
- How do I want my advisor to be compensated? Ask if the advisor receives commissions, referral fees or other financial incentives. Some advisors tout themselves as “fee-based,” but also accept other payments that could influence their recommendations
The RKG Advantage
RKG Financial is a Registered Investment Advisor. Founded in 1995 by Robert K. Gustafson, Certified Financial Planner CFP®, we believe now as we believed 15+ years ago, that providing clients with the piece of mind that their best interests are being considered 100% of the time is, and must remain, our top and unwavering business principle. To this end, RKG Financial is a fee-based, independent financial advisory firm providing professional guidance for our clients in all areas of personal and business finance.
Long term financial success does not happen by accident nor will it happen on its own. It requires customized planning and frequent review that only comes from the services of a competent and unconflicted advisory firm. Contact us to schedule a free, no obligation introductory consultation. It’s your family. It’s your money. It’s your future. It’s your responsibility.