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How your financial advisor gets paid defines the relationship

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Commission

An advisor paid through commissions is a Representative of a Broker-Dealer. They receive compensation when they sell a product to a client. The cost of the commissions are passed on to the client.

Fee-Only

A Fee-Only advisor is typically licensed as a Registered Investment Advisor (RIA).They receive compensation through fees and are prohibited from selling any products for a commission.

Fee-Based

A Fee-Based advisor is a hybrid of both. This allows them to operate as a Registered Investment Advisor while also providing the ability to sell investment products that pay a commission.

Different types of advisors have different duties to you, the client

SUITABILITY

Broker-Dealer Representative

When your broker recommends that you buy or sell a particular security or product, your broker must have a reasonable basis for believing that the recommendation is suitable for you. In making this assessment, your broker must consider your income and net worth, investment objectives, risk tolerance, and other security holdings.

FIDUCIARY

Registered Investment Advisor

Fiduciary duty includes both a duty of care and a duty of loyalty. In addition to assessing suitability, these duties require a fiduciary to act in the best interest of the client, and to provide full and fair disclosure of material facts and conflicts of interest.

The Fiduciary Standard under which Registered Investment Advisors operate is generally considered a higher standard which requires the Advisor to put the Client’s needs ahead of their own on an ongoing basis. The Suitability Standard under which Brokers operate only requires that recommendations are suitable to the Client’s circumstances at the time the recommendations are made.

Meld-ExteriorMeld Financial is a Fee-Based Firm

At Meld Financial, we are both Registered Investment Advisors and Representative of a Broker-Dealer. We predominately operate as a RIA and charge fees for our services. Maintaining our registration as Representatives of a Broker-Dealer provides us the flexibility to choose the fee structure that is most cost-efficient for our clients in their particular situation. This can be advantageous for clients who are best served by products not typically available to Fee-Only Advisors.

Meld Financial’s clients understand that our relationship with them is not transactional. Our relationship operates as a partnership where our success is measured by your success. Our goal is to diminish your anxieties about your finances so that you can focus on what is most important to you – your job, your family, your goals.

Managing the costs of investing is critical. We have a variety of fee structures available and we work with you to determine the most cost effective means of delivering the services you need.

 

Asset-Based Fee

To manage your assets, we typically charge a fee based on a percentage of your overall account balance. You are hiring us to manage your assets in accordance with your situation, and we hold ourselves to the fiduciary standard.

 

Commission

In some circumstances, an asset-based fee is not cost effective for your situation. For this reason, we maintain the ability to charge a commission.

 

Flat-Fee

For financial plans and special projects, we charge a flat, mutually-agreed-upon fee for the services we provide. Fees vary based upon the complexity of services required.

 

Hourly Fees

If you prefer to retain our services on an hourly basis, we will work with you to estimate the time that will be required to provide the service you are seeking.

Our fees are clearly defined up front and are reported to you on a regular basis.

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