How Much Does Your Financial Advisor Charge You? Do You Know?

Recently I viewed an article asking "How is My Financial Advisor Compensated?" Very good question for someone to ask. Commission-only, fee-based, Fee-only are the three methods in which I'm familiar. I work off of commission-only. For me the choice was obvious for my clients. I couldn't see handing a client a bill for my hours put into their case, as I will receive a commission on the products associated with the plan we've implemented on behalf of the client. Not all advisors who have chosen fee-based are wrong or unethical, because you have that handful of prospects (and it may be family!) every year that want a couple hours of your time, advice, etc. to not hear from them for a long time.
Again, I'm not criticizing that fee-based or fee-only advisors are the worst or evil. I'm merely giving you the information so that you, the consumer of a very important service, have the insight before you sit down with one. Yes, there are times when I wished I had a fee-based system in place for those aforementioned. For me, if I receive a $25k or higher commission for piece(s) in the plan, I may feel indifferent about sending a bill for 8 hours of estate planning at about $200/hr. In those cases where I would like a fee-based system as well, product commissions take care of the $1600 I would've billed.
Everybody is different and the method of compensation that is part of their bsuiness-fabric, is up to them. The point to not be missed here is totally the shared information. An educated consumer is a consumer who makes some of the best choices when it comes to imploring a business or individual to complete a service.
That is the reason, without judgement on those who choose a different compensation style, I tell my clients or prospective clients that I am a commissioned-based advisor.
The items within the scope of what is being planned and proposed are usually commissionable products that compensation is sufficient for my time. Usually, the more you work with higher net worth clients and market, you will see higher commissions that make it easier to choose to adopt a commission-based compensation platform.
There are numerous advisors who choose other compensation plans and could teach me something about the field I'm proud to have a career in and servicing my clients...many of which have become family friends.

Great article by Roger Wohlner http://thechicagofinancialplanner.com/2009/06/23/how-is-my-financial-advisor-compensated/
Follow Roger on twitter @rwohlner
Good stuff Roger!