The Value of a Fee Based Advisor

A shared goal, a stronger relationship.

Why are more and more financial advisors fee-based? It comes down to philosophy. Advisors are increasingly choosing a business model that promotes a trusted, ongoing relationship with a client, rather than just a sale.

Would you rather meet with an advisor, or a salesman? A fee-based advisor has every motivation to be your financial consultant and help you manage the investments you have chosen. Does a transaction-based advisor have similar motivation?

The transaction-based business model is built on selling you a product. When a client buys an investment, the broker gets paid a commission upfront. So this model inherently encourages an investment broker to hunt down the next sale. What if you don’t buy any more investment products? Will the broker still stick around and financially consult you for years to come? Maybe – but that’s not what the business model is about.

My interests are aligned with yours. The fee-based business model focuses on a relationship – the ongoing supervision of the client’s assets under management (AUM), with part of the advisory fees dependent on the performance of those assets.

In the fee-based business model, when you do well, the advisor does well. This encourages a sense of partnership and collaboration in planning your financial future, as opposed to just selling you an investment product here and now.

As a fee-based advisor, I have the same goal you have – the goal of growing your assets. We both succeed when that happens.

In the bear market downturn, as the value of client assets declined, so did advisor fees: financial advisors lost some of their own personal wealth and income.

I feel fee-based is better. I offer my clients the option of a fee-based relationship because I feel better about advising them in this way. My conscience and my ethics have guided me toward this business model – and through it, I can provide what I believe to be better guidance for my clients. Victor Larsen is a Representative with WFG Advisers LP and may be reached at (210) 340-2109 or

These are the views of Peter Montoya Inc., not the named Representative nor Broker/Dealer, and should not be construed as investment advice. Neither the named Representative nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information.

Securities offered through National Securities Corporation (NSC), Member Member/SIPC. Advisory services provided through National Asset Management, Inc. (NAM), an SEC Registered Investment Advisor; a copy of NAM’s brochure is available on NAM’s website. Fixed Insurance products offered through National Insurance Corporation (NIC). We currently have individuals licensed to offer securities in the states of: TX, IL. This is not an offer to sell securities in any other state or jurisdiction.

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