Why is Fiduciary Important?
When advisors hold themselves to a fiduciary standard, they are legally bound to place clients’ best interests ahead of their own. Kinsight has always held itself to the standard of a fiduciary and has always operated on a Fee-Only basis.
What does Fee-Only mean?
- It means that we are not compensated for investment transactions.
- It means that we don’t receive commissions, rebates or other types of soft-money of any kind.
- It means that you know exactly what you’re paying for and why.
Why is Fee-Only Important?
When founding our firm, we decided that being Fee-Only was the most objective method of delivering financial advice. This prediction has turned out to be true, as we are now seeing traditional commission-based organizations move toward being ‘fee-based’, but not Fee-Only. This distinction is important because ‘fee-based’ advisors may receive other forms of compensation that are not necessarily disclosed to the client. As a result, it is increasingly more difficult for consumers to find advisors who are truly providing objective advice – advisors who operate under fiduciary standards.
Why consider a Fee-Only Advisor?
- Fees are fully disclosed and easy to understand.
- The financial interests of the advisor and client are aligned.
- our advisor can bundle services into the fee, which is difficult to do in a pay-per-transaction relationship.
- Your advisor has the freedom to make recommendations without raising suspicion of churning or acting in other manners of self-interest.Source: The National Association of Personal Financial Advisors (www.napfa.org)