Commission or fee based investment management - which compensation model is better for the client?   In my last post, I explained how commission-based investment advisors make their money since they don’t directly charge clients a fee. In this post, I’m going to explore if the difference in compensation models present any conflicts of interest between client and advisor and which is best for you. Let’s look at an imaginary investment advisor named John. If John sells an A Share Class … [Read more...]

What Everyone Should Know About How Commission-Based Investment Advisors Work   Recently I had a conversation with a client where we reviewed their investment accounts and the topic of investment management fees came up. This client had previously worked with an investment advisor who worked on a commission basis so they weren’t used to seeing these fees on a statement. Of course I’m very transparent about the way I am compensated as an investment advisor, but when you come from working … [Read more...]

Many people ask if it is better to contribute to a Roth IRA/401k or a Traditional IRA/401k. Before I get into the breakdown of the numbers, we need to cover some definitions. Contributions to a traditional IRA or 401k can be taken as tax deductions in the tax year they are made. These deductions reduce your gross income, thus reducing your tax burden for the year. Both contributions and earnings are tax-deferred until the funds are withdrawn. That means that when you withdraw the funds, they … [Read more...]

Something I’ve noticed lately through conversations with prospective clients is that many people believe that all financial advisors (and people who give any sort of financial guidance/advice) are the same and that they basically do the same things. I completely understand why people think this. There are many different titles like financial advisor, financial planner, financial counselor, financial consultant, investment advisor, investment consultant, investment counselor, the list goes on … [Read more...]