advisor feesIt’s always prudent to understand just how much you’re getting charged and the way you are getting charged for services from your investment advisor. Some investments charge a flat commission fee and many investors assume that is all the fees that are involved.

However, what the advisor is likely not telling you is they are probably taking another percentage in service fees. And if you have a second party involved, you have to add their commission to your original advisor’s commission, and then add in any investment expense.

For these reasons, many investors believe that a fee-only advisor is the answer. The belief is that this kind of advisor isn’t receiving any income from any other means than through a client billing process. In reality, most of these fee-only advisors charge a fee for services. And a true fee-only advisor makes up a very minute fraction of the advisors out there, because they operate on a fee basis that is out of the reach of a majority of people’s needs.

The bottom line is that no matter how an advisor charges fees, complete transparency is the base of any good investment advisor. The preferred compensation should be whichever serves the client in the most advantageous way.

If you have questions about the accountability and credibility of investment advisors, we invite you to call Mooney Lyons at 1.847.382.2600, or visit us at We can help ease the complexity and reduce the anxiety in many areas of retirement planning in a sincere and straightforward manner.