Ask Terry Questions Fiduciary fees

Fiduciary fees

By Terry Savage on January 26, 2024 | Financial Planning / Retirement

My financial advisor (Fairhaven Wealth) is a fiduciary and charges 1% annually..at 1/4% per quarter..is that 1/4% determined by my balance at each quarter or by the amount in account at the beginning of each year? So what is meant by a flat fee or is it an agreed amount and no percentages quarterly or anytime? I enjoy listening to you on WGN radio especially with John Williams and sometimes you’re pretty funny! Thank you,Renee

Terry Says

Fiduciary advisors are advisors who agree to put your interests first. And they put that in writing.
That doesn’t mean they can’t earn commissions or charge fees based on assets under management (as you describe). But a “fee-only” advisor uses neither of those models. Instead, he or she charges a flat consulting fee, which might be several thousand dollars a year. It depends on the services they provide, and if you need accounting or estate planning help.

Your first meeting with a fee-only fiduciary should be free– a discussion of what they think you need, what you think you need — and then they can set an appropriate fee if you choose to use their services. Find a fee-only, fiduciary advisor at Wealthramp.com.

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