HOW ARE YOU PAID?

Advisers may be compensated in many ways but are commonly grouped as Fee-Only, Commission Based or Fee-Based (Hybrid).

A Fee-Only investment adviser is a type of investment professional who charges a fee to the client based on a percentage of the assets under management (“AUM”) or charges a flat hourly rate.  A Fee-Only adviser cannot receive commissions or any other type of compensation from anyone and can only be paid by the client.  In addition, a Fee-Only adviser must disclose the fees they charge to the client.

Commissioned based or Fee-Based (Hybrid) advisers receive compensation based on the specific financial products they sell you.  Because these advisers receive different levels of compensation based on different products sold they may be incented to recommend a product that rewards them better over one that may be the best choice for the client.

K-Mack Financial, LLC is a Fee-Only Wealth Management

 

WHAT CREDENTIALS SHOULD A WEALTH ADVISER HAVE?

There are at least 100 financial designations and many are just empty titles without education or ethics requirements.  The title “Retirement Specialist”, for example is a made up title with no standing in the profession.  In fact, the title Financial Adviser (Advisor) has no meaning or requirements either.

The credentials you want to look for are the ones that take a significant amount of time and expertise to master.  The CFP® credential is one of the most recognized and accepted credentials for serious financial advisers.  CFP® professionals are held to strict ethical standards to ensure financial planning recommendations are in your best interest. What’s more, a CFP® professional must acquire several years of experience related to delivering financial planning services to clients and pass the comprehensive CFP® Certification Exam before they can call themselves a CFP® professional.

HAVE YOU OR YOUR FIRM BEEN CITED FOR DISCIPLINARY ISSUES?

This is a good question to determine if the adviser or their firm has possibly acted in good faith.  A good source to confirm this question is to go online to “FINRA Broker Check”.  And fill in their name and zip code.