Competition is what fuels Capitalism, and this same principle produces this important value-added benefit to the investment world. Finding the financial advice you need while paying the lowest fees, only makes sense when it comes to optimizing your investment. Although, choosing an advisor with the lowest fees doesn't always mean success. In this regard, let's explore why investors are finding competitive fees bring value-added benefit when hiring fee-only advisors.
Value-Added Benefit
In context, this is describing a well-rounded financial planning and investment advisory service, which in addition has great financial value. Fee-only advisors like Artifex, are able to save investors money over the long-term, while giving them unbiased financial advice. Well-rounded means investors receive comprehensive financial advice depending on their situation and needs.
Fee-only is contrasted with commission and fee-based advisors. The difference has to do with the way the advisor gets compensated for giving financial advice. While it may seem a commission based advisor costs less, the reality is often the opposite. In the mean-time, investors are getting biased financial advice and being surprised with hidden fees.
Value-added benefit is a loaded statement, which basically means a fee-only advisor is working solely for the investor's interest. This also means the advisor's fees are transparent and formulated around their clients' specific needs. After all the pomp and splendor is settled, fee-only advisors also save their clients money in fees, while making them money with unbiased investment advice.
Real Cost of Financial Advice
Investment advice from a commission-based financial advisor in a bank, brokerage firm, or traditional advisory setting – tends to have higher ongoing management costs than the flat or one-time fees of a fee-only advisor.
For instance, although a commission-based financial advisor may seem to be working independently, in reality they're like a self-employed contractor to a major brokerage firm. This means they have access to their resources, but are required to provide the firm their revenue. The advisor is compensated with commissions, which come from the fees paid by the client for each investment transaction.
What this means is the investor is paying fees for every financial transaction they make, even if these aren't stated transparently. Also, the investment in the first place, is likely one with higher management fees, and thus not really in the best interest of the investor. So, although it may seem like these traditional types of commission-based advisors are more cost-effective, in reality they cost more and tend to give biased financial advice.
Fee-Only Benefits
Investors are tired of all the convoluted fees from traditional commission-based advisors, and are finding fee-only financial advisors a refreshing change. Truly, for most investors looking for custom financial advice, a fee-only advisor is the only way to get unbiased help. In the process, investors are also finding out that competitive fees bring value-added benefit.
Artifex has different methods of establishing our fee depending on our clients' needs, such as: flat, asset-based, or one-time. For instance, clients can pay a simple, transparent annual fee for all their financial planning and investment advice needs. Our goal is to meet our clients' financial expectations, while providing value with our service that exceeds our fee. The result of this dedicated effort, is saving our clients more than they pay us for our service. Additionally, for younger clients, or people with smaller portfolios, we offer our unique Wealth Club service, which provides a steamlined, effective package for as little as $50 per month (there are three membership levels, which you can learn about here).
Another benefit fee-only financial advisors give investors is comprehensive expertise in: financial investments, planning, and retirement. For instance, Artifex offers investors a high standard of professional service in: personal financial planning, wealth management, corporate retirement plans, and all the subsets within these.
Summary
Navigating the financial world and making the right long-term decisions with your wealth, is too important to be left in the hands of a biased financial advisor. Ensure your advisor is working solely for your interest, by working with a fee-only financial firm. This important decision gives investors competitive fees with value-added benefits.
Artifex Financial Group is a fee-only firm based in Ohio. When investors choose to work with our experienced and expert advisors, they can expect straight talk, an all-inclusive approach, unbiased advice, and value that exceeds our transparent fee. Please contact us today to find out how we can help your financial portfolio grow.
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