The Fee Only investment advising and financial planning model acknowledges that how advisors are compensated for their service has a direct impact on the management of conflicts of interest between client and advisor. We are compensated by advising fees only on a transparent fee schedule and do not receive commissions for any advice given. We do not receive a higher fee for one product or strategy over another, and that allows us to manage investments strictly according to the clients intentions and best interests.
For our Investment Only Variable Annuity clients, this means that as opposed to the traditional Variable Annuity model, we do not sell annuities. We sell investment and financial planning advice, and we are compensated by fees rather than commissions. This is why we've chosen to work with Jefferson National's Monument Advisor platform- a rare Variable Annuity platform that does not charge commissions and operates on a fee basis.
Further, being Fee Only means that we do not have a particular incentive to open an Investment Only Variable Annuity, or any other type of account. We're compensated an identical amount no matter which investment vehicle, tax shelter, or investment strategies we use. This way, you know that if we've recommended taking advantage of tax-deferral advantages of an IOVA, we're recommending it because it will provide an optimal benefit.
We don't take custody of client funds- all accounts are kept separately in the client's name with a Custodian institution. We work with Vanguard Brokerage Services as our custodian for IRA's and taxable brokerage accounts. For our Variable Annuity accounts, we work with Jefferson National's "Monument Advisor" platform.