What is a Fee-Only Advisor
Commissions create an inherent conflict of interest between a client and a broker (sales-person). Fee-only advisors do not charge commissions like brokers do, nor do we share revenue from investment products that we recommend. We earn our income by charging either an hourly fee or fee based upon assets under management. Informed, independent and objective financial advice is what we are compensated for. At Bluemound Asset Management, we are fiduciaries representing your best interest by ethic and rule.
Unlike brokers who have lower standards, Federal and state law requires that Registered Investment Advisors are held to a Fiduciary Standard. These rules require that an advisor act solely in the best interest of the client. This includes finding the best investment alternatives with lower expenses when possible. Investment Advisors must disclose any conflict, or potential conflict, to the client prior to and throughout a business engagement. Investment Advisors must adopt a Code of Ethics and fully disclose how they are compensated.
Beware of financial advisors who maintain their broker's license while declaring themselves to be investment advisors. In many cases, they have severe conflicts of interest. At Bluemound, we have given up our broker's licenses voluntarily so that we can be true investment advisors working on a fee-only basis.
Consider these thoughts:
Consumer Reports: "Watch out for sales commissions and conflict of interests. Consumer Reports continues to believe the Fee-Only planners remain your best option."
Newsweek Magazine/Washington Post: Jane Bryant Quinn: "Financial Planners who take commissions have a built-in conflict of interest... even with disclosure, my choice would be a fee-only planner.
AARP: “You can be sure that a fee-only planner won’t try and sell you an investment just to earn a commission.”
Bluemound's Investment Advisory Services
In a world flooded with stock brokers and financial products, investors frequently overlook the quiet success of private money management firms. As a Wisconsin Registered Investment Advisor working on a fee-only basis we sit on the same side of the table as you.
For portfolios that we manage on a discretionary basis, we bill based upon assets under management, therefore, if your portfolio falls in value, we take a pay cut. It is only if you are making money, do we get a raise due to your assets increasing in value. Even then, as your assets grow, we gradually reduce our fee percentage. Working with us is a tremendous relative value compared to most other firms.
We also offer hourly consulting services to those who wish to manage their portfolios themselves at their own custodian or have retirement plans they wish advice for. These services are very worthwhile for the investor who is comfortable with and has the time to manage their own portfolio, but would like insights and guidance from a nationally published and recognized financial author and adviser in Kirk Spano.
Contact Kirk Spano directly to learn more.