It depends. There are three commonly used fee structures: fee-only, fee-based, and commission-based,
Advisors can be compensated in three ways:
It’s impossible to say exactly how much you will end up paying for an advisor – it really depends on the type of advisor you decide to hire, the amount of trading or planning you will be using them for, and the size of your portfolio.
In some transactions with commission-based planners, you may not see any out-of-pocket cost; their commissions are built into the products in such a way that it may not appear that there is any direct cost for their services.
Variable annuities are a good example of this: the companies that sell them have fees built into the product, which are disclosed to the client, but the amount of compensation that the advisor receives may not be disclosed. The compensation is often based on a present value calculation of a small portion of the annual fees and is usually paid to the advisor up-front.
This is not necessarily bad for investors except that the advisor has lost some of the incentive to keep up with the investment and to help it thrive.
Do I need an Advisor on a permanent basis?
Should I Pay for Financial Planning Services?
Cash Balance plans are Defined Benefit plans, but are not much like Pensions, or other types of retirement plans
The dividend rate is basically just the value of the annual dividend of a company, stated as the monetary value
Non-cash contributions to a charity which are valued at over $5,000 must be reported on a Form 8282 by the organization
The Rectangle Top pattern forms when a currency pair's price is stuck in a rangebound motion, between support and resistance
The Relative Strength Index (RSI) is used by traders to assess the price momentum (recent trading strength) of a stock or other security.
A Profit and Loss Statement, also referred to as an “income statement,” is a corporate statement for an exact time period
ABI is an indication of the size of market movement, regardless of direction
An account balance is the amount either credited to or owed on a ledger assigned to a particular entity or line-item
Chapter 15 bankruptcy allows foreign companies access to the US bankruptcy court system in certain circumstances
Mutual funds come in many varieties, but here are some basics to keep in mind to help you find your way