October 1, 2018 In Financial Planning, Investments

Fee-Only vs. Fee-Based Financial Advice

Fee-Only

Financial Advisors that are Fee-Only are paid directly for their services by their clients. They can be paid either as a percentage of assets they manage, a fixed planning fee, or hourly fees. Fee-Only planners are only paid from their clients. They can charge a one-time fee or an ongoing fee for their services.

Fee-Only advisors have fewer conflicts of interest because they are only paid by the client and their interests are aligned with the client. They only worry about the client’s needs as a result. Fee-Only advisors cannot accept any compensation because of product sales and therefore makes working with them more transparent for clients.

 

Fee-Based

Fee-Based financial planning may sound like Fee-Only but is significantly different. The main difference is that Fee-Based advisors can accept commissions from financial products, annuities, and insurance products that they sell their clients. There tend to be a lot of conflicts of interest for the financial advisor. Fee-Based advisors may do some fixed fee planning but also sell commission-based products alongside the planning fee. There tends to be less transparency with Fee-Based advice.

 

*Davis Private Wealth is a Fee Only Financial Planning firm in Wellington, Florida. As a Registered Investment Advisory firm, we have a fiduciary duty to all of our clients.

September 1, 2018 In Budgeting, Miscellaneous

New Amazon Prime Credit Card!

As I have been meeting with clients lately, I have continuously brought up the Amazon Prime Credit Card that I recently signed up for. I feel that the benefits of this card are fantastic and worth sharing. If you shop at Amazon and/or Wholefoods a significant amount, then you would benefit the most from this card.

Here are some of the benefits of using this card:

5% back on purchases at Whole Foods and Amazon (3% if you don’t have Amazon Prime)

2% back on purchases at restaurants, gas stations, and drugstores

1% on all other purchases

No foreign transaction fees

Here is a link to all the card benefits on Amazon: https://www.amazon.com/b/?ie=UTF8&node=16070413011

I’m anticipating that our family will spend around $12,000 this year at Whole Foods (since this is Melissa’s favorite grocery store😊). So, with 5% cash back we will get back $600 each year versus the 1% we were getting on our previous card. Of course, I advise that you pay off any credit card balances each month.

 

*Financial Planning, Wealth Management, & Investment Management firm in Wellington, FL.