There are two fundamental ways that financial advisors are compensated:
“FEE-ONLY” and “COMMISSION”
FEE-ONLY simply means that all of an advisor’s compensation is received from the client, and none from product sales commissions. This is typically achieved through a combination of Hourly fees, Financial Planning fees, and Asset Management fees, which is how Beacon Financial Partners operates.
COMMISSION based advisors receive commissions from financial companies for selling investment and insurance products to clients. NOTE: Beware, “Fee Based” advisors receive both commissions from product sales and fees from clients!
In a word – Objectivity. Commission based products lead to an inherent conflict of interest between advisor and client. We have all read horror stories about advisors that churn client accounts or sell clients the products that pay the highest commissions, not the products that are best for clients. Because Beacon Financial Partners is fee-only and receives no commissions of any kind, we have no incentive to use products that are not in your best interest, or to recommend a product or service you don’t need.
A fee-only advisor like Beacon Financial Partners works for you as a fiduciary acting in your best interest. A commission or fee-based advisor does not.
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