of the major differences between Derse | Morgen and other financial advisors is
the way that we are compensated for our services. While many other financial
advisors receive commissions from financial companies for selling their
products, we believe there is a significant conflict of interest if an advisor
stands to gain more financially by recommending one product over another. We
have designed our compensation structure to eliminate this conflict of
interest, and align our financial success with the financial success of our
clients. This means you can be confident that the advice you receive is truly in
your best interest.
We are compensated in two distinct ways for two distinct and separate services, and you can choose whichever of these methods is right for you.
Advisory Services Compensation (Flat Fee)
of our clients wish to engage our firm to provide comprehensive financial
planning and analysis services only, and prefer to implement our findings and
recommendations on their own, including managing their own investments. In this
situation, we would quote a one-time fee for our services, based on the time
and complexity necessary to address the client’s needs and goals. This fee is
paid directly by the client at the completion of the planning process. We would
then provide the client with a written summary of our findings and
recommendations, which they could use to implement their financial plan.
Investment Management Compensation (Percentage)
of our clients choose to engage our firm to provide not only comprehensive
financial planning services, but also to have our firm assist them in
implementing the findings and recommendations from the planning process. This
would include on-going investment management and monitoring of their wealth and
investment plan. In this situation, we still provide the client with a quoted
one-time fee for service amount, as described above, however this fee is
typically offset by future asset management fees that our firm may receive as
part of managing your investments. The typical fee for asset management is
approximately 1% per annum* applied to the total assets we manage. This fee is
deducted from the client’s investment account ¼% each quarter.
Derse | Morgen Financial Advisors we believe that our relationship with you
should be a “win-win”, therefore we will only bring on a new client if the
value we can provide you substantially outweighs the cost of our services. Even
so, we charge less than the majority of fee-based and fee-only financial advisors on average, while providing substantial value through our comprehensive wealth management approach. Our fees depend upon the total assets under management and therefore differ for each client. We always disclose your fee in our investment plan meeting./
following chart illustrates the average fees charged by financial advisors and
financial planners and the percentage of advisors that charge that fee.