| |
Full-Commission
Broker |
Wrap
Programs
(Fee-Based Brokerage Programs) |
Independent,
Fee-Only Financial Advisors |
| Financial Planning Services
Offered: |
Plans are often standardized and
focus on investment products. |
Typically do not offer financial
planning services. |
Customized plans based
on investor's needs. |
| Investment Management
Services offered: |
Varies with the broker; ranges from
standardized program to periodic buy and sell recommendations.
|
Generally an asset allocation plan
based on individual's goals and risk tolerance. |
Thorough needs assessment
conducted, customized investment plan developed and
tailored to the investor's personal goals. Ongoing
investment management. |
| When adjustments are
made to your portfolio: |
Varies with the broker; investor
must generally give approval before broker can enter
orders for each trade. |
Varies, can be periodic or ongoing.
|
Adjustments can be made
at any time as market conditions or personal circumstances
warrant. |
| Cost to Investor: |
Investors pay commissions and/or
sales charges that vary with the amount of trading
and/or investment products sold. |
Generally an annual fee of 2%-3%
of assets, which includes commissions. |
Set fee for services,
flat fee, hourly rate, or annual fee of approximately
.5% - 1% of assets under management. |
| Investor's relationship
to financial professional: |
Varies with the broker; contact ranges
from frequent to sporadic. |
No personal relationship with the
professional who manages the investments. |
Investor works directly
with the professional responsible for providing advisory
services. Contact is frequent. |
| Minimum account size:
|
Varies. |
Generally between $25,000 and $100,000.
|
Varies. |
