One of the biggest questions when working with a financial advisor is usually; “How do you get paid?”
This is such an important question! All too often, this is never made clear to clients by other advisors. It is important to know that Fike Advisors, LLC is a Registered Investment Advisor (RIA) with the State of Ohio. This means we must adhere to the Fiduciary Standard, which in summary means we must act in the best interest of the client AT ALL TIMES.
There are three common ways a financial professional can be paid:
- Assets Under Management (AUM) Fee: This is the most common way for a fiduciary to be paid. A fee is based on the value of the assets you have invested. This fee includes the cost of investment advice, financial advice on any topic, and all coaching and educational events. Most clients choose this fee over the other options because of the value they receive for the cost.
- Hourly Fee: This is an option for people who do not wish to invest their assets in our portfolios and simply want advice on specific matters. In our experience, clients who choose not to become investment clients have more complicated problems that require more of our resources. Since we get paid by the hour, costs could be significantly higher than the assets under management fee model.
- Commission: Fike Advisors, LLC does not offer commission products. Commissions can create a conflict of interest between the client and the advisor. To avoid this bias and stay within the Fiduciary Standard, our investment portfolios are free from commissions. Insurance products from affiliates may fit the needs of a client better than our investment portfolios, and in those circumstance we may refer you to an affiliate insurance agency.
If there are any specific questions related to the fees charged by Fike Advisors, LLC please refer to the link below.