ARBOR OUTLOOK: Wall Street Journal Interviews Growing “Fee-Only” Firm

Published: Thursday, March 14, 2013 at 04:47 PM.

Fee-Only” means that we do not sell any products, nor do we accept commissions of any kind from any source.  We are compensated solely by our clients.  We have no proprietary interest in any fund.  Every dime of our firm’s revenue comes directly from our clients.  People want some personal attention, they don’t want their assets thrown in a pot and they don’t want to reach voicemail when they call about their money. 


Question:  What’s important about no product sales and no commissions?

Arbor Wealth: It eliminates a potential conflict of interest between the advisor and the client.  If an advisor sells you a product and receives a commission for doing so, you may wonder if the sale was in your best interest or the advisor’s. 


Question:  Why does the compensation model matter?

Arbor Wealth:  If an advisor is paid additionally for putting a client’s assets into a parent company mutual fund, for instance, the possible conflict of interest should be discussed with the client.  Or if an advisor receives a commission for selling the client an annuity, which are notoriously high commission products, one may wonder if that annuity sale is more beneficial to the advisor or the client. 

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