How to find those hidden fees and costs invested in mutual funds in your retirement portfolio?
FEE-BASED
- Compensation paid can create a conflict of interest between what is best for you, the client, and what is best for the advisers interest
- Usually charge both fees and commissions based on the products they sell
- Hold licenses that allow them to sell investments or insurance products for a commission
- Don’t have a duty to disclose their method of compensation. It can confuse clients who may not fully understand when their fee-based advisers are working for commissions
FEE-ONLY
- No inherent conflicts of interest
- Fees or compensation not based on
product sales - Provide more comprehensive wealth management advice based on asset allocation
- Carry professional designations which hold them to strict codes of professional and ethical conduct.
- Fee-only advisers are obligated to charge a one-time or ongoing fee, depending on the types of services they provide
- Fees normally based upon the percentage of assets under management
