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The great economist Adam Smith said, "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest."
It is vital to your long term success to make sure that your planner’s incentives line up with your own. |
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How other companies charge fees on investments:
Most brokers receive compensation/commissions based on the products that they sell to you. That broker’s incentive may be to sell you whichever products pay out the highest commission. Usually the worse the product is for the client, the higher the commission to the broker. The best product for the broker’s wallet may not necessarily the best product for the investor’s.
What does this mean for your financial plan?
When a broker receives compensation based on what he sells you, his self interest may direct him to sell whatever will provide him the largest commission, which may not necessarily be good for you. This means that the broker will put his interests first. It is important to find a planner whose motivation is to do what is best for you.
How Parkshore Wealth Management charges fees for investment management:
We have a fiduciary responsibility to you. Because of this responsibility, it is important to make both the planner and the investor’s incentives match up. With regard to management fees, we believe that simple and basic are the way to go. We charge a fee based on the value of your portfolio. We only make more money, when you make more money. Our bottom line doesn’t improve until yours does first.
We believe in building relationships rather than just making transactions.
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