Fee-Based Investment Advising

What is a fee-based adviser? A fee-based adviser usually charges a percentage of your portfolio's assets each year. That means the advisor does well only if he helps you grow and protect your wealth and gets you closer to your goals. If his decisions cause you to lose wealth, he earns less. The upshot: A fee-based advisor has a legal, moral and economic incentive to give you the best advice about your wealth.

In this situation, the financial advisor has a fiduciary responsibility to choose investments that are in your best interest. They typically use investments that have low internal expenses such as carefully selected mutual funds, stocks and bonds; investments that have low or no 12b1 fees.

If, for example, the smartest thing to do at a particular moment is to stay disciplined and maintain your current asset allocation, that's exactly what a good fee-based advisor should recommend.

By contrast, a commission-based advisor usually gets paid only when he buys or sells an investment for your portfolio. There is a potential for a conflict of interest if the commission-based advisor is more focused on generating revenue than what is best for your portfolio.

Of course, in some instances, a fee-based advisor may not be necessary. If, for example, you have a modest amount of assets and your financial situation is straightforward and easy to comprehend, you may simply need the services that are most economically provided in a commission-based account. 

In many examples the fee-based advisory account starts to make economic sense at the $100,000 account balance and above. There are occasional exceptions to this rule. Some advisors will only work with accounts of $250,000 or more. So are comfortable with much less.


Structured Investing - Our Distinctive Investing Philosophy

If you are like the vast majority of investors today, saving and investing to reach your financial goals can often seem like a huge challenge. With its roots in facts, data and decades of analysis, the Structured Investing philosophy is a defined and disciplined process that consists of a number of closely connected steps.

Instead of trying to beat the market, we believe that you should let the market work for you.

The Structured Investing philosophy offers a prudent, strategic approach designed to help investors achieve their lifetime financial goals. It combines:

  •  In-depth financial research
  •  In-depth studies of investor psychology and behavior
  •  Eight decades of empirical evidence and practical applications

While there are no guarantees of results in any specific account type, through both bull and bear markets, our distinctive philosophy has never wavered.

We believe there are four key concepts that play an essential role in the construction of a portfolio tailored specifically to each investor's goals and needs:

Click here to download the 4 Steps to an Effective Portfolio brochure.