Value of a Fee-Based AdvisorSubmitted by Sims Investment Management, LLC on September 19th, 2019
Does fee-based advising make sense? At the end of the day, I believe it boils down to philosophy. Many advisors, like myself, have decided that a business model that requires transparency and trust is just the right thing to do.
It should be about more than making a sale. A fee-based advisor has a fiduciary responsibility to always do what’s in your best interest. Does a transaction-based advisor have similar motivation? Perhaps.
Transaction-based advisors depend on selling you a product in order to receive commission regardless of how your portfolio performs. Of course, every advisor is different, but knowing the financial motivations driving the transaction-based model is just smart business.
My interests are your interests. The fee-based advisor focuses on maintaining a long-term relationship with you and your investments.
I always feel a sense of partnership and collaboration when I’ve been able to help a client prepare for their financial future, as opposed to just selling an investment product here and now. As a fee-based advisor, I have the same goal as you: growing your assets. We both succeed when that happens.
Fee-based works best for me. I offer clients just like you the choice of a fee-based relationship because it’s what's best for them and also true to my philosophy as an advisor.
My conscience and my ethics have guided me toward this business model – and through it, I believe I can provide the absolute best guidance to my clients.