ANSWER: Being able to clearly identify the cost associated with any particular investment or investment strategy, and then making an informed decision as to whether or not the investment/strategy being considered adds value after accounting for all embedded and explicit costs.
Using a Fee-Based portfolio management approach, clients pay their advisor directly, as opposed to the advisor being compensated behind the scenes from the investment company.
This is done by establishing a clear % fee, charged monthly.
This fee is fully transparent and identifiable for the client.
With this method, there is ZERO other compensation the advisor earns from the client/portfolio.
The main benefits include:
Similar to other professional industries, fees from an investment advisor should be well defined - not hidden within an investment's performance.
Contact our office to see how you can start working with a team who has been voluntarily disclosing fees since they began managing portfolios.