![]() Kitces notes that the different types of advisers serve different types of consumers. ![]() A fee-based adviser typically doesn't have a vested interest in recommending one financial product over another.įinancial blogger Michael Kitces is more bullish on the concept than Finke: “From the broader industry perspective, I do expect advice-only to continue to gain traction with a segment of consumers, similar to how fee-only did (going all the way back to when fee-only also constituted just a miniscule portion of advisors, as advice-only does today).” Commissions can come with conflicts of interest because, for example, the adviser may receive higher commissions on some investments. ![]() They may charge a commission on investments or a fee that is a flat percent of the value of the client’s assets. Advisers who manage client investments typically operate under a model known as assets under management, or AUM. “I think it's a noble idea that has little chance of making inroads into the conventional financial planning business model,” says Michael Finke, professor of wealth management at The American College of Financial Services.īoth Finke and Garrett agree that currently, only a very small number of financial advisers offer advice-only services - likely fewer than 1% - while the vast majority of advisers operate under the AUM model.įinke is skeptical that the advice-only model will catch on, mainly because it doesn’t pay financial advisers enough to make it worth their time. What to Look for in a Financial Adviser Will it Catch on?
0 Comments
Leave a Reply. |