December 15, 2011
Here's the good news: You have more options than ever for paying your financial adviser. The bad news? It's even tougher to figure out if you're getting the best deal for your money.
Recurring asset-based fees help build a lasting bond between clients and advisers, says Michael Finke, a personal-financial-planning professor at Texas Tech University. "It's a long-term proposition where you derive your compensation from your client on a regular basis," he says. "There is some incentive to provide a greater breadth of financial services when you have a long-term relationship."