Comments on: What’s the Difference Between “Fee-Based” and “Fee-Only?” http://allfinancialmatters.com/2006/10/31/whats-the-difference-between-fee-based-and-fee-only/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Thu, 24 May 2012 12:43:16 +0000 hourly 1 http://wordpress.org/?v= By: gettingrichtogether.blogspot.com http://allfinancialmatters.com/2006/10/31/whats-the-difference-between-fee-based-and-fee-only/comment-page-1/#comment-43984 gettingrichtogether.blogspot.com Sat, 11 Nov 2006 04:59:34 +0000 http://allthingsfinancialblog.com/2006/10/31/whats-the-difference-between-fee-based-and-fee-only/#comment-43984 I think the best way to go is option 3)No financial advisor at all. For many of us, especially the younger ones, I would guess that we have nowhere near enough invested to warrant an advisor. Besides, with blogs like this one, there is plenty of advice out there to help you on your way. As a general rule: ETFs, ETFs, ETFs! I think the best way to go is option 3)No financial advisor at all.

For many of us, especially the younger ones, I would guess that we have nowhere near enough invested to warrant an advisor. Besides, with blogs like this one, there is plenty of advice out there to help you on your way. As a general rule: ETFs, ETFs, ETFs!

]]> By: Links From The Financial Blogville » My Money Blog - Stumbling Along the Path to Financial Freedom http://allfinancialmatters.com/2006/10/31/whats-the-difference-between-fee-based-and-fee-only/comment-page-1/#comment-43886 Links From The Financial Blogville » My Money Blog - Stumbling Along the Path to Financial Freedom Fri, 10 Nov 2006 21:55:44 +0000 http://allthingsfinancialblog.com/2006/10/31/whats-the-difference-between-fee-based-and-fee-only/#comment-43886 [...] What’s the Difference Between “Fee-Based” and “Fee-Only”? at AllFinancialMatters - If you’re paying someone else to handle your money, you should know this. [...] [...] What’s the Difference Between “Fee-Based” and “Fee-Only”? at AllFinancialMatters – If you’re paying someone else to handle your money, you should know this. [...]

]]> By: Regret http://allfinancialmatters.com/2006/10/31/whats-the-difference-between-fee-based-and-fee-only/comment-page-1/#comment-39322 Regret Sat, 04 Nov 2006 03:14:46 +0000 http://allthingsfinancialblog.com/2006/10/31/whats-the-difference-between-fee-based-and-fee-only/#comment-39322 Well, I don't disagree with your point that there can be a big difference, but as a registered investment advisor (a fee-only business), I can say that we use the terms interchangeably. We're probably not helping the fee-only planners out there, but the issue isn't something about which we or our clients worry about too much. Well, I don’t disagree with your point that there can be a big difference, but as a registered investment advisor (a fee-only business), I can say that we use the terms interchangeably. We’re probably not helping the fee-only planners out there, but the issue isn’t something about which we or our clients worry about too much.

]]> By: » Weekly Blog Round-Up on Consumerism Commentary: A Personal Finance Blog http://allfinancialmatters.com/2006/10/31/whats-the-difference-between-fee-based-and-fee-only/comment-page-1/#comment-38979 » Weekly Blog Round-Up on Consumerism Commentary: A Personal Finance Blog Fri, 03 Nov 2006 06:23:55 +0000 http://allthingsfinancialblog.com/2006/10/31/whats-the-difference-between-fee-based-and-fee-only/#comment-38979 [...] Five Cent Nickel remarks on a new house-selling television show. AllFinancialMatters outlines the differences between “fee-based” and “fee-only” financial planners. Mighty Bargain Hunter wrote about Facebook. [...] [...] Five Cent Nickel remarks on a new house-selling television show. AllFinancialMatters outlines the differences between “fee-based” and “fee-only” financial planners. Mighty Bargain Hunter wrote about Facebook. [...]

]]> By: Denise http://allfinancialmatters.com/2006/10/31/whats-the-difference-between-fee-based-and-fee-only/comment-page-1/#comment-38330 Denise Wed, 01 Nov 2006 13:52:14 +0000 http://allthingsfinancialblog.com/2006/10/31/whats-the-difference-between-fee-based-and-fee-only/#comment-38330 I can make myself crazy thinking about the role and structure of a financial advisor relationship and have on many occassions. I mean, if my AUM is sky high, that guy is not earning his keep, I'm sure. And how smart of a business guy can the "fee-only" person be if they aren't taking full advantage of the income opportunities in their very own market/industry. And the product-sellers, well, we all know which fund they are going to lean toward. However, at the end of the day, though, I try to console myself by noting that it is not in the best interest of ANY financial advisor to lose money for you, right? If they did that, you'd pull all your business. So instead of making myself crazy, I just look at my bottom line and am happy if I'm gaining according to my goals. I know from experience, too, that moving from advisor to advisor creates more anxiety and potential loss through fees and such than a little lost to commission. This probably goes against much of the advice of PF, but for me, the price of sanity, in working with someone I like and trust and can communicate with, and avoiding the constant second-guessing is worth it to me. I can make myself crazy thinking about the role and structure of a financial advisor relationship and have on many occassions. I mean, if my AUM is sky high, that guy is not earning his keep, I’m sure. And how smart of a business guy can the “fee-only” person be if they aren’t taking full advantage of the income opportunities in their very own market/industry. And the product-sellers, well, we all know which fund they are going to lean toward.

However, at the end of the day, though, I try to console myself by noting that it is not in the best interest of ANY financial advisor to lose money for you, right? If they did that, you’d pull all your business. So instead of making myself crazy, I just look at my bottom line and am happy if I’m gaining according to my goals.

I know from experience, too, that moving from advisor to advisor creates more anxiety and potential loss through fees and such than a little lost to commission. This probably goes against much of the advice of PF, but for me, the price of sanity, in working with someone I like and trust and can communicate with, and avoiding the constant second-guessing is worth it to me.

]]> By: Russell Bailyn http://allfinancialmatters.com/2006/10/31/whats-the-difference-between-fee-based-and-fee-only/comment-page-1/#comment-38003 Russell Bailyn Tue, 31 Oct 2006 21:48:13 +0000 http://allthingsfinancialblog.com/2006/10/31/whats-the-difference-between-fee-based-and-fee-only/#comment-38003 Wow, I think we must think along the same lines. I wrote a post on a very similar topic at around 2:00. The only difference is that my post focuses on fee-only advisors and "the real" fee-only advisors. Getting paid based on AUM is a fancy way for planners to pat themselves on the back for being fee-based and continue earning a fortune. A true fee-based advisor will charge an hourly fee or a flat rate for creating a financial plan or investment policy statement. Then, the client can visit an e-trade type brokerage and buy the securities for $10 a pop. Wow, I think we must think along the same lines. I wrote a post on a very similar topic at around 2:00. The only difference is that my post focuses on fee-only advisors and “the real” fee-only advisors. Getting paid based on AUM is a fancy way for planners to pat themselves on the back for being fee-based and continue earning a fortune. A true fee-based advisor will charge an hourly fee or a flat rate for creating a financial plan or investment policy statement. Then, the client can visit an e-trade type brokerage and buy the securities for $10 a pop.

]]>