Fee Only
Almega Wealth Management is a Fee-Only Fiduciary Advisor
The way in which your financial planner is compensated can make all the difference in the recommendations they make for you. That’s because some advisors work under a standard that only requires their recommendations be suitable to your particular situation. Almega Wealth Management works under a fiduciary standard that requires we consider what is in our client’s best interest.
, aYou may be wondering why your advisor would make a recommendation that are not in your best interest. That’s where the issue of compensation comes into play.
There are three basic ways in which financial advisors are compensated:
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- Through a commission-based model
- Through a fee + commission model
- Through a Fee-Only model (Fiduciary Standard)
Both commissioned and fee + commission advisors receive compensation based on the specific financial products they sell to you. Because of the inherent conflict of interest in these transactions, these advisors may have difficulty putting the client’s interests above their own.
The National Association of Personal Financial Planners’ (NAPFA) position is the Fee-Only method of compensation is the most transparent and objective method available. This model minimizes conflicts and ensures that your financial planner acts as a fiduciary. Fee-Only planners are compensated directly by their clients for advice, plan implementation and for the ongoing management of assets. All NAPFA members are required to work only within the Fee-Only structure, accepting no commissions for their work.
Fee-Only financial advisors may be paid hourly, as a retainer, as a percentage of assets (AUM), or as a flat fee, depending upon the planner you choose.
Almega Wealth Management is a Fee-Only advisor. We charge a percentage of assets under management. In certain circumstances, we charge an hourly rate.