Merits of Fee-Based Management

I want to let you know about five key reasons why fee-based management has great merit and why I've transitioned many of my clients to it.

  • No pressure to buy or sell investments. Investment brokers are sometimes guilty of “churning” – pressuring clients into buying or selling so that they can earn a commission linked to a transaction. Fee-based management mitigates that threat. 
  • No conflict of interest. Full-commission brokers are sometimes encouraged to “push” certain investments. That may be good for the brokerage and its employees, but it may not be good for you. Under fee-based portfolio management, the emphasis is not on product sales, it is on investment performance.
  • The investor and the advisor share the same goals. Through fee-based portfolio management, I am paid from the assets I manage. It benefits you to increase your net worth and achieve your investment objectives, and it also benefits me as part of my compensation relates to the performance of your portfolio.
  • The investor and the advisor stay in touch. At a brokerage, financial consulting may be offered to a client once, and then never again. Fee-based portfolio management promotes continual communication between the advisor and client – a real relationship.
  • Wealth management becomes the true priority. Fee-based management promotes a clear, holistic approach that addresses many financial issues and needs.

I think you will find much to like and recommend about all this. Should you have any questions about it, please contact me at 952-746-1321 or send an e-mail to [email protected]  I would be happy to speak with you.