Post on 23-Jun-2015
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© SEAN NISIL www.seannisil.com
SEAN NISIL
Intentional Stewardship
www.seannisil.com
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4 Questions to Ask Your Financial Advisor About Fees
© SEAN NISIL www.seannisil.com
© SEAN NISIL www.seannisil.com
About Me
I am a fee-only financial planner based in San Diego, California. I help individuals and families across the nation live dream-lives, and leave enduring legacies.
My mission is to help you dream big, establish a solid financial foundation, make wise decisions with your resources, work with greater focus, and live an extraordinary life.
Visit my blog, www.seannisil.com, where I write on INTENTIONAL STEWARDSHIP.
– Home to Independent Annuity Reviews.
Fees ~ Compensation ~ Commissions
Your financial advisor’s compensation should be an open book.
The way they are paid can potentially create conflicts of interest and increase your bottom line costs.
© SEAN NISIL www.seannisil.com
Fees ~ Compensation ~ Commissions
Whether you have a longstanding relationship with an advisor, or you are considering making a change…Here are 4 questions to ask your advisor about fees.
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1. How Are You Registered?
• If your advisor is a Registered Representative for a securities or brokerage firm, then they are registered with FINRA. These types of advisors typically make their living on commission by selling financial products, stocks, bonds, mutual funds, etc.
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1. How Are You Registered?
• If your advisor charges a fee for service or advice then they are generally registered with the SEC or by state, depending on the level of assets they manage. Fees are often taken either as a flat fee, or as a percentage of assets under management.
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2. What direct compensation are you receiving from me?
• This includes hourly rates, flat-fees, commissions (from product sales, transaction fees within the accounts, etc.) and any other cost you may be charged to enact business with the advisor.
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3. If I buy financial products from you, what kind of payment do you receive?
This question is a divining rod. If your advisor can’t answer this question quickly, clearly, and accurately it's
a red flag. © SEAN NISIL www.seannisil.com
3. If I buy financial products from you, what kind of payment do you receive?
• For example, if they are selling you a mutual fund, does the mutual fund company give them a commission for selling their product?– The same goes for ABC Annuity Company, or ABC
REIT Company, etc.• Often, these types of payments are not
obvious to the investor, and they may be a conflict of interest.
© SEAN NISIL www.seannisil.com
4. Do you have incentive to offer me one solution over another?
• Sometimes advisors are working to hit a sales goal for a vacation or bonus. – Make sure whatever
product or solution is being presented to you is in your best interests.
© SEAN NISIL www.seannisil.com
© SEAN NISIL www.seannisil.com
SEAN NISIL
Intentional StewardshipSN
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