Some people don't know or are confused about what fee-only advisors do for their clients. Here is a list of some of things we do and don't do.
What we do:
- Provide advice that is in the client's best interest. This means that if a client comes to me with an idea that doesn't make sense for their situation I have a duty to tell them so and not follow them blindly.
- The heart of what we do is create and implement comprehensive financial plans so client's are prepared to handle all of life's financial needs.
- Fee-only compensation paid directly by the client.
- Disclose all conflicts of interest.
- Disclose all costs.
- Challenge you to think about and answer tough financial questions.
- Help clients complete a budget.
- Worry about things in our control: costs, asset allocation and location, savings, having a financial plan.
- Use diversified asset allocation models with the goal of managing risk and earning returns without extreme ups and downs.
- Evaluate insurance policies to make sure you are protected and possibly save you money.
- Look for ways to limit taxes.
- Consult with the client's CPA, estate planning attorney and other advisor's to make sure we are trying to accomplish the clients goals.
- Be your advocate
- Remind you when you are straying from your goals.
- Help you allocate all your investments including 401(k), 529 plans, IRAs, joint accounts, etc.
- Meet with client's children and grandchildren to pass on your values about money.
- Help you make decisions about diverse subjects including home financing, car purchases, business succession.
- Set up individual and business retirement plans.
- Education funding options and investment savings plans (529s).
- Free to use investments that we believe are best for the client.
- We are free to work with companies that we believe provide valuable solutions to our clients and our business.
- We are patient and do our best to keep emotions out of our decisions and advice.
What we don't do:
- WE ARE NOT BROKERS.
- We don't offer hot stock picks.
- We don't sell insurance or financial products.
- We don't deviate from our chosen investments. If we are evaluated based on performance then we are going to invest in what we believe in.
- We don't day trade.
- We don't work for a brokerage firm or a bank.
- We don't hide fees.
- We don't receive kickbacks.
- We don't work with one fund company.
- We don't buy stocks or funds based on TV personalities recommendations.
- We don't have managers pushing us to sell one product over another because it pads the corporate bottom line.
- We don't pay referral fees or receive referral fees.