At Financial Solutions Group, part of our responsibility is providing transparency to our clients about the investments they own and the associated expenses. Whether through upfront commissions, ongoing fees or a combination of these efforts, it is important to understand how a financial professional derives compensation, as well as how those fees are factored into your overall wealth management plan. While fees certainly are not the only criteria needed to evaluate an investment, they are an important factor to consider for your bottom line, and something we take into consideration for each of our recommendations.
Our team uses a hybrid approach between fee-based and commission-based compensation structures to provide the flexibility to deliver the most cost-effective and diverse options available. There are times when commission-based structures are more cost-effective or appropriate for you than fee-based structures and vice versa, and we work to deliver the best-case scenario for your needs.
Because we do not have a cookie cutter approach to money management, our management fees will vary as certain portfolios are more costly to operate than others depending on the underlying holdings and associated managers.
Investment funds, such as mutual funds, exchange-traded funds or insurance-based products all contain total fees that can be very difficult to identify, including operational expenses and administrative fees for turnover within each fund. Many investors are unaware of these costs because they are more often referenced in investment prospectuses rather than in the more accessible statements.
To help factor these hidden costs into our wealth management evaluations and provide increased transparency to you, we monitor these fees, advocating to get them as low as possible, utilizing our experience and firm size to leverage additional savings for you. We research, analyze and can prepare reports disclosing these fees to make them more accessible to you.
In addition to money management fees, depending on the complexity of your financial situation and analysis involved with constructing a plan, there may be an additional cost for financial planning services that will be disclosed prior to initiating work. This fee would be based on the breadth and depth of the analysis work required to create your tailored financial plan.