URI:http://www.jeffnat.com/print.cfm?docid=34Date: 09 Sep 2010

4 ways advisors may bill for their services

How much you pay for the services of a professional financial advisor varies depending on what type of advisor you choose—and how they structure their financial practice. Generally, advisor compensation breaks down like this:

Fee Structure	Advisor Profile
1. Fee Only	These advisors assess fees based on an hourly rate or a percentage of assets under management.
2. Commission Only	These advisors are paid a commission for selling a company's investment products. You don't pay for this commission directly, but you're affected indirectly through increased product costs.
3. Fee-Based (Fee Plus Commission)	These advisors may receive commissions if you buy a recommended product; in other circumstances, they may simply charge you a fee for developing a plan or for providing specific services.
4. Salary	A more limited number of advisors are "salaried," meaning they actually work for a financial services company and focus on selling that company's products.

Before you agree to work with an advisor, you should know upfront what you're getting—and how much you'll pay for services. Monument Advisor is designed specifically for fee-only and fee-based advisors. Advisors who sit on your side of the table and objectively recommend services. (They're not paid to sell you products.)