We are a fee only based adviser. There are primarily three business models for investment advisers regardless of the investment products.

Commission Based Adviser Compensation –Though a commission based adviser may say they have the best interests of the client in mind they may not. The interest of the advisor is not aligned with the interest of the client because the advisor’s commissions generally have no direct bearing on the investment return. This is not a good way to pay your Financial Adviser because it becomes impossible to distinguish the best interest of the client from the best interest of the adviser.

Fee Based Adviser Compensation – The fee based adviser model can be more confusing to the average investor because these advisers receive both a fee for investment advice and may also receive incentive payments for products sold. These investment advisers are conflicted by the fees paid by their clients and those they receive as incentives from the underlying investments. Though the intentions may be good, we believe that the model does not often work either because the investment performance is not directly tied to the adviser/clients performance. In addition the name itself only helps to confuse the client as to how the Adviser is compensated. Firms like brokerage firms, insurance companies and even banks may operate under this mixed model. Any time the adviser’s compensation is tied to commission or incentive payments, the client will have good grounds to wonder- is the investment in the best interest of the client?

We are a Fee Only Compensation Model – Fee only advisers sell their Knowledge. These advisers charge only for their advice and the ongoing management of their client’s investments. These advisers do not receive any commissions or incentives for placement of their client funds in any products. The Advisers fee grows as a result of the increase in value of the client’s funds. We believe that this model is the only model where the advisers interests are truly aligned with those of the client.