What is a Fee-Only Advisor?
Harbor Asset Planning is a Fee-Only advisor. The term “Fee-Only” refers to how an investment advisor is compensated. A Fee-Only Advisor does not accept commissions or any compensation other than that which is paid directly by the client. Advisory fees are established in advance and are typically based on a percentage of client assets.
Four Benefits of Choosing Fee-Only Asset Planning
Our only form of compensation comes directly from our clients. We do not earn any commissions or fees on the investments we recommend.
We do not offer or sell you anything in order to make money. Many advisors and financial planners earn all or most of their compensation from commissions on investments in mutual funds or insurance based products. This incentive makes it difficult for an advisor to recommend a no-load mutual fund or other low cost product or strategy even when it may be in your best interest. Financial incentives derived through the sale or recommendation of certain products, whether they are mutual funds or annuities, make for an inherent conflict of interest. As a Fee-Only Advisor, our advice is entirely objective.
Many investment companies reward their employees for selling certain products or investment vehicles to their clients. The sale of these products financially benefits the investment company and broker, often at the expense of the client’s best interest. As a Fee-Only Advisor, we have no such program or incentives. Our advice is based solely on what is best for you.
Fee vs. Lower Cost
High commissions and high cost funds do not translate into better returns. Fees can greatly affect your investment results over time. It is in our mutual interest to recommend to you high quality / low cost investment vehicles. Switching from a full-service brokerage to a Fee-Only Advisor can greatly improve your financial outcome. The low cost approach keeps more of your money working for you.