Jersey Shore Financial Advisors LLC

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WHY FEE ONLY?

Generally financial advisors are paid either by charging fees or earning commissions.

Commission-Only Advisors earn their income by selling financial products such as insurance or mutual funds, or may also earn a fee for trades that they execute.

Fee-Only Advisors earn their income by charging fees. Some common methods include an hourly rate, an annual or retainer fee or as a percentage of investments under management.

Fee-Based Advisors earn their income using a combination of fees and commissions.

It may seem like semantics but we believe it is very important to know what you are paying and how. Some advisors may not tell you what the fees you are paying unless you ask. Be sure to find out about the fees, sales charges, loads, commissions or any other costs you may incur up front. Sometimes compensation methods may not be as obvious they should be.

Loads: A “load” is another term for sales charge. If you are buying an A-share there is an up-front sales charge of usually around 5%, but can be as much as 8%. A B-share does not have an up-front charge, but requires you to own the fund for a certain period of time, typically 5 to 7 years. If you wish to sell the fund before then, you will pay a charge at that time. At Jersey Shore Financial Advisors, LLC, we recommend “no-load” mutual funds to eliminate these charges.

Expense Ratio: The expense ratio is the percentage of the total fund assets that is used to cover expenses. These include management fees, which are paid to the fund manager, and operating expenses.

12b-1 Fees: These are additional marketing and distribution fees that are charged to you by a fund. These are included in the calculation of expense ratio and sometimes called a “hidden load.” Often, a portion of these fees is used to compensate financial advisors, so your funds may be helping to pay an advisor to market.  Does this make sense?? 

As part of our planning process we will analyze the cost of your current investment program and make a recommendation keeping in mind your goals, objectives tolerance for risk etc.

Be wary of advisors who claim their services are “free.” I don’t know of anyone who can work “free.” 

It’s more likely they are being paid in other ways, without specifically explaining that to you and potentially in ways that may not be best for your personal financial goals.

For a free, no-obligation consultation click the “Book a Meeting” button on the right.

Thomas J Duffy, CFP®, MBA is a NAPFA registered fee-only financial advisor.  The National Association of Personal Financial Advisors (NAPFA) is the country’s leading professional association of Fee-Only financial advisors—highly trained professionals who are committed to working in the best interests of those they serve. Since 1983, Americans across the country have looked to NAPFA for access to financial professionals who meet the highest membership standards for professional competency, client-focused financial planning, and Fee-Only compensation.

Jersey Shore Financial Advisors LLC is a registered investment advisor in the State of New Jersey. Jersey Shore Financial Advisors LLC may only transact business or render personalized investment advice in New Jersey and international jurisdictions where we are registered/filed notice or otherwise excluded or exempted from registration requirements. The purpose of this video is for information distribution on products and services. Any communications with prospective clients residing in states or international jurisdictions where Jersey Shore Financial Advisors LLC is not registered or licensed shall be limited so as not to trigger registration or licensing requirements. Financial Advisors LLC is a registered investment advisor in the State of New Jersey. Jersey Shore Financial Advisors LLC may only transact business or render personalized investment advice in New Jersey and international jurisdictions where we are registered/filed notice or otherwise excluded or exempted from registration requirements. The purpose of this video is for information distribution on products and services. Any communications with prospective clients residing in states or international jurisdictions where Jersey Shore Financial Advisors LLC is not registered or licensed shall be limited so as not to trigger registration or licensing requirements.

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