Annex Wealth Management
Know The Difference™ Checklist
Are you a fiduciary?
Only true fiduciaries are required to act in their client’s best interest.
Annex
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The Other Guy
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Are you a fee-only advisor?
Fee-only advisors minimize conflicts of interest. They don’t accept compensation based on product sales, or sell proprietary investments, or accept payments to put certain funds in your accounts, and they typically provide more comprehensive advice.
Annex
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The Other Guy
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Oops! We could not locate your form.
Are you a fiduciary?
Only true fiduciaries are required to act in their client’s best interest.
Annex
Always
We’re committed to acting in your best interest.
The Other Guys
Sometimes
Sometimes, they act in your best interest, sometimes they want to go on that cruise.
Never
Wait…what’s a fiduciary? If your advisor can’t give you a straight answer, run.
Are you a fee-only advisor?
Annex
Always
We’re a fee-only advisor.
Fee-only advisors minimize conflicts of interest. They don’t accept compensation based on product sales, or sell proprietary investments, or accept payments to put certain funds in your accounts, and they typically provide more comprehensive advice.
The Other Guys
Sometimes
Sometimes.
Fee-based advisors may charge both fees and commissions based on the products they sell. Because fee-based or commission-based advisors generally don’t have a “duty to disclose” their method of compensation, it can confuse clients who may not fully understand when their fee-based advisers are working for commissions.
Never
Never.
There is an inherent “moral hazard” with commission-based advisors. A “moral hazard” is a situation where a party has a tendency toward being more willing to take a risk, knowing that the potential costs or burdens of taking such risk will be borne, in whole or in part, by others.
