Quickie Wall Street Journal observation. Last Wednesday’s Personal Journal section has an article about fee-based vs. commission-based payment options for financial advice. Hurrah! Jane J. Kim gets it right!
Proponents of fee-based systems always attack commissioned sales reps with the presupposition that their personal interests can’t possibly permit them to make a recommendation to a client that’s in the client’s best interest.
Ms. Kim points out that what’s right for you depends on more than price. She points out that fee-based investors pay an average of .89% of assets, while commission-based investors pay an average of .72%, continuing on to point out that there are also differing levels of service.
Dare I say that good, old-fasioned TRUST and RELATIONSHIP might be something buyers consider? It takes time to get there, and to be sure, our time is our most precious asset. But shouldn’t we also admit that what we really want is a safe transaction without having to put the time in?
Caveat emptor… crazy idea.