I got out of the investment sales industry in the mid-1980s and became a "Registered Investment Advisor". I did this in order to offer investment advice on a "fee-only" basis. The "fee-only" advisory model offers the client several benefits. First, the customer is getting objective advice and ...more

I got out of the investment sales industry in the mid-1980s and became a "Registered Investment Advisor". I did this in order to offer investment advice on a "fee-only" basis. The "fee-only" advisory model offers the client several benefits. First, the customer is getting objective advice and not a sales pitch. If a commission is involved then one always has to wonder if the broker is doing it for his or her benefit or that of the client. The second reason is that the cost of investing in the investment "sales world" is very high. It is easy for an advisor to bring that overall cost of investing way down. It is interesting that if a person can get an 8th of a point lower on a mortgage they will dump the bank immediately and go across the street for a lower rate. Also if they could get an 8th or a quarter point higher rate on a Certificate of Deposit they will do the same - close the account and go across the street. But if a mutual fund has a 5% commission attached to it and a 1.25% annual fee and they could get the same type of fund with better performance paying no commission and only .5% annually, it does not register. The fee-only advisory business is a service business. You simply hire an advisor to do a job that you do not have the time or the inclination to do yourself. If you do not have the time, interest or inclination to keep up with how the changing world economy will affect your investments, then it is worth it to hire someone for a reasonable fee to help you handle the job.less