Our Fee-Only

Fiduciary Model

Common Competitor Compensation Methods

Understanding how your financial professional is compensated will give you better insight on what services you will receieve. Many studies show that one of client’s biggest confusions is how their financial professional is compensated. Common methods for compensation are shown below:

Fee-Only

Fee-only means that the financial professional charges a relatively low asset management fee based on a percentage of assets under management, without commissions. This means that there is not any other financial incentive that compensates your professional investment manager. This pricing structure reduces incidents of conflict of interest and is often preferred by firms like First Financial Advisors that have discretion over management of client portfolios. What this means to you, is that if you prosper, we prosper.

Fee-Based

This is one form of compensation that is critically misunderstood. Fee-based means that the financial professional is compensated through fees paid by the client plus commissions paid by the companies that provide packaged products like mutual funds and annuities. This is different from a Fee-Only Advisor who only receives compensation from the client directly.

Salary

If a financial professional is paid a salary, he or she is not compensated for recommending any particular product.. An important aspect to this form of compensation is that these professionals are sometimes limited to the products offered by their employer (i.e. bank, insurance company, financial firm etc).

Wrap-Fee

A wrap fee is a consolidated fee structure for comprehensive services that are offered. This is a convenient form of compensation because any underlying transaction fees, financial advice, and brokerage services are all “wrapped” up in a bundled fee. Typically wrap-fee programs range from 2% – 3% of the assets that advisers manage. The only disadvantage is that this type of fee structure can be more expensive than other options and more extensive if you don’t need the adviser’s comprehensive services.

Commissions

Many honest and qualified advisors are compensated through commissions, however, conflicts of interest can arise. They receive payment for their services based on which mutual funds, insurance, annuities, or other products they sell you. Different commission amounts are paid on different products, and there can be incentives to recommend one product over another or to move you from product to product.

Our Fee-Only Fiduciary Model

We understand that fees raise concerns. We believe that our simple yet competitive advisory fee puts your interests first. We have complete discretion to recommend the best types of investments for each individual client. We thoroughly research each investment added to your portfolio, which may be individual stocks or low cost ETF’s (exchange traded funds). We do not receive commissions.

Portfolio Value – Assets Under Management	Annual Fee

On assets up to $1,000,000	1.5% per year
On assets over $1,000,000 and under $5,000,000	1%
On assets over $5,000,000 or more	0.75%

How do I get started?

Speaking with a financial professional can be scary and intimidating. It is our goal to make you feel as comfortable as possible and feel as though you are part of the family. Read more to understand what to expect before our first meeting.

Learn More

Frequently Asked Questions

Do I need to sign a long term contract?

Yes, we do have a contract. However, we want to ensure that we are held accountable for the services we offer. You can cancel your agreement at any time – with no cancellation fees. Although we do not charge a cancelation fee, account closing fees may be charged by the custodian of your investment account.

How difficult is it to switch from my current broker or financial advisor to First Financial Advisors LC?

It is not a difficult process, but there is paperwork and maybe surrender fees in some cases. Please reach out to us first so that we can help manage the process and make it easy.

How do you charge your management fee?

We charge our management fee based on the amount of assets we have under management. We use a monthly average balance as part of the calculation. For example, if your balance in January was $100,000, February was $150,000, and March was $200,000, then we add those balances ($450,000) and divide that by 3 which equals $150,000. We would then assess one fourth of the annual fee to that average balance and charge it in arrears directly to the account.

How is the management fee paid?

Our quarterly investment management fee is taken directly from your investment account at the end of each quarter.

Our Fee-Only

Fiduciary Model

Common Competitor Compensation Methods

Fee-Based

Salary

Wrap-Fee

Commissions

Our Fee-Only Fiduciary Model

Portfolio Value – Assets Under Management

Annual Fee

On assets up to $1,000,000

1.5% per year

On assets over $1,000,000

and under $5,000,000

1%

On assets over $5,000,000 or more

0.75%

How do I get started?

Frequently Asked Questions

Do I need to sign a long term contract?

How difficult is it to switch from my current broker or financial advisor to First Financial Advisors LC?

How do you charge your management fee?

How is the management fee paid?

Contact Us

We look forward to hearing from you!

Market Information

Quick Links

Social

Disclosure