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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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.