At Synergy Capital Management, LLC, we believe that a client’s goals and objectives are what should drive the financial planner’s recommendations, not the planner’s method of compensation.
In the traditional client-advisor relationship, numerous “conflicts of interest” are often present that can have a negative impact on the advisor’s ability to give a client unbiased advice. For example, commission-based compensation, proprietary (i.e. in-house) investment and/or insurance products, referral fee arrangements, kickbacks and sales contests are all impediments that can potentially encumber the advisor in providing unbiased advice. As a result, an advisor’s compensation is often determined solely by the quantity of the products they sell rather than the quality of their advice.
The vast majority of individuals who call themselves “financial planners”, “financial advisors”, “investment advisors” or some similar term are actually financial product salespeople who do not have what is known as a ” fiduciary” relationship with their clients. A fiduciary is a person who owes to another the duties of good faith, trust, confidence and candor. When a financial advisor acts in a fiduciary capacity, that advisor is legally obligated to maintain an allegiance of confidentiality, trust, loyalty, and accountability to his or her clients. Thus, they must do what is in the best interest of their clients, not their product provider.
Synergy Capital Management, LLC understands that individuals seek unbiased advice and guidance in making their financial decisions. Synergy Capital Management, LLC is completely independent from any bank, brokerage, insurance, mutual fund or national financial planning company, and therefore have structured our firm on what is known in the industry today as a “fee-only” financial planner.
What does fee-only financial planner mean?
Fee-only financial planning and investment management is a client-centered approach to providing financial services, where the advisor works solely in the best interest of the client. We are an exception in the business in that we do not sell any financial products (stocks, mutual funds, insurance, annuities, etc.) and we do not receive any commissions or compensation from any other source. We are compensated solely by fees paid directly from our clients. As a result, any conflicts of interest are taken completely out of the question. We recommend nothing until we assess your values, goals, priorities, spending plans and current net worth. Less than 1% of the nation’s financial planning firms, such as ours, operate on a fee-only basis. We work strictly for our clients, so the only goals we pursue are yours.
What Does This Mean to You?
It means that there are no hidden agendas. Synergy Capital Management, LLC’s sole focus is in helping you achieve your financial goals, not on generating sales commissions. As a result, you get independent and unbiased advice on what is best for your situation. In the end, fee-only financial planner means financial planning, not financial selling.
Want to learn more about what makes Synergy different? Read our company philosophy.