At TBH, we strongly believe transparency and honesty are of the highest importance. Generally, most individuals are charged one of two ways by various investment firms:
- Commissions on products or security trades
- Asset based charges, but not necessarily “fee-only”
What does it mean to be “fee-only”?
- To be “fee-only” means the firm cannot accept any compensation directly, or indirectly, outside of the client agreement. This eliminates any potential conflict of interest with advice.
- A “fee-only” model creates a win-win situation for the advisor and the client. The advisor isn’t rewarded for selling things to a customer, but rather on the long-term relationship preservation and growth over time.
- It is important to note, that many large investment firms use the wording “fee-based” instead of “fee-only”. This is a subtle but important difference. “Fee-based” means the firm can still get kickbacks, revenue-share, and commission for sales, like insurance, annuities, etc. All of which, are strictly prohibited in the “fee-only” space.
At TBH, our costs are 100% transparent, and we are 100% “fee-only”. At any moment, TBH can easily give our clients a detailed breakdown of our costs. We remain committed to the belief that the industry should adopt a “fee-only” model, where advisory firms are held to the highest fiduciary standard.
To learn more, please contact us for a complimentary consultation.