The Fee-Based Advisor
Over 80% of the securities compensation as a wealth manager is fee-based.
The fee-based advisory practice is one wherein the advisor is directly compensated by the client, either paying hourly or contract fees to create a financial plan, or through an investment management fee. The fee-based practice is opposed to commissions, which occur from the sale of products.
The majority of our clients prefer the fee-based relationship, as this more closely aligns the interest of the client and the advisor. As the client is successful, the advisor is rewarded, regardless of the products used. In a commission-based setting, the advisor's compensation is not based on success, but on transactions. The success or failure of the advisor's efforts do not effect compensation, so the advisor may not be incentivized to provide the long-term service necessary to achieve a client's objectives.
While some financial products, such as life or disability insurance, are commission only, we engage in discussion with our clients to fully disclose our methods of compensation and make sure our clients fully understand the options available to them, and pledge our best efforts to maintain a competitive fee schedule that allows us to fully deliver our service to our clients.
Main Street Family Advisors does not accept nor pay referral fees or other forms of compensation, outside of those directly related to our advisory practice.