Question 1

What is a fee-based financial advisor?

Accepted Answer

A fee-based financial advisor is a professional who earns money through both a fee paid by their client as well as by selling other financial products and services. Fee-based financial advisors earn additional income from financial products bought through them and through accounts opened through them.

Question 2

Are fee-based financial advisors worth it?

Accepted Answer

A fee-based financial advisor may be a more cost-effective option for your financial requirements if you're seeking an advisor who can assist you in a range of financial services, as opposed to hiring multiple financial professionals. Moreover, they also may be a good option for you if you're looking for assistance in managing a large portfolio over the long-term.

Question 3

How can I find a fee-based financial advisor?

Accepted Answer

To hire a suitable fee-based financial advisor,you may consider asking your friends or family for a few recommendations.
    You may also consider using search engines such as Google, Yahoo and Bing to look up 'fee-based financial advisors' near you.
    However, if you're looking for a match service that can help connect you with the most suitable and vetted financial advisor for your unique financial situation and future financial goals,
    consider using the services of a free match service provided by WiserAdvisor. Answer a few simple questions and get matched to upto 3 qualified financial advisors suited to your needs.
     You may also use WiserAdvisor's Financial Advisor Directory to research and find a suitable fit for your specific needs. The directory also provides pertinent information on the advisor's experience, qualifications, financial services, and more, to help you assess if they are a good fit for you.

Question 4

Can the fee you pay your fee-based advisor be deducted from your taxes?

Accepted Answer

Financial advisors fees were considered deductible from taxes under 'miscellaneous investment-related expenses' up until 2017. However, in late 2018, alterations were made to the Tax Cuts and Jobs Act that eliminated miscellaneous itemized deductions for the 2018 tax year. Hence, post this change, advisor fees are no longer tax-deductible. These changes will remain effective until the 2025 tax year, unless the government were to reconsider their decision.  
    Read More: Are Your Financial Advisor Fees Tax Deductible?

Question 5

Should I transition to a fee-based financial advisor?

Accepted Answer

If you're working with a commission based advisor, transitioning to a fee-based advisor may be a wise choice for you. Commission based advisors may not follow a fiduciary standard of duty and may not put your best interests as a client before their own while suggesting financial products to you; fee-based advisors, on the other hand, tend to be fiduciaries, so you can expect more transparency in their services.  Additionally, commissioned services may work better for clients who are looking for an advisor who is less active in managing their portfolio over a limited period of time. However, if you're looking for an advisor who is actively involved in allocating assets and managing your portfolio on a long-term basis, transitioning to a fee-based advisor may be the right option for your needs.

Question 6

What is the advantage of having fee-based financial advisors?

Accepted Answer

There are number of advantages to working with a fee-based financial advisor:  i. Fee-based financial advisors can assist you over the long-term in helping you manage and grow your finances through various financial services, from investment management to financial planning, and more. They may also be a more cost-effective option for your financial needs if you require assistance for a range of financial services, as opposed to hiring multiple financial professionals.  ii. Fee-based financial advisors tend to be fiduciaries, which indicates that they are legally bound to put your interests before their own in the financial advice and services they offer. You can also expect transparency in the services they provide, such as having a set fee structure as per the services the advisor offers.

Financial Advisor	Experience	AUM	Minimum Assets	Fee Structure
Evan R. Guido6260 Lake Osprey DrLakewood Ranch, FL 34240	N/A	$625,000,000	$250,000	Fee-Based
Kenneth Nelson10604 Bent Twig DriveRaleigh, NC 27613	N/A	Not Specified	$0	Fee-Based
Kevin Kroskey700 Ghent Road, Suite 100Akron, OH 44333	N/A	$600,000,000	$500,000	Fee-Based

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