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ADVICE ONLY

Why Advice-Only?

Many of the clients we serve ask why we chose to be compensated for our work on an advice-only or hourly basis. The answer is simple.  Many other professionals are fee-for-service.  Accountants, Attorneys, Auto Mechanics, Carpenters, Electricians, House Painters, Physicians, Plumbers, and even Undertakers all charge using the fee-for-service model.  We believe it is the fairest, most transparent way to bill for our services.

 

Financial Services firms typically operate under one of three models:

 

Commissions – Firms using this model receive a commission each time you purchase a specific product, an Annuity contract, an Insurance Policy, or an Investment product. They may build a “free” Financial Plan that strongly supports selling one or more of these products. 

 

Fee-Based – Fee-Based is a combination:the firm receives a commission on the products they sell and may also charge you a fee to manage your investments, expressed as an Assets Under Management (AUM) fee, including some of the products they sell you.

 

Fee-for-Service or Fee-Only – Advisory firms using this model typically set their fees on an hourly or flat fee based on the complexity of your needs. They may also charge a separate AUM fee for any assets under management, however, they do not receive any commissions or “kick-backs” for any particular products.

 

Each has its inherent conflicts of interest.  However, a professional Financial Planner operating under the Fiduciary standard will do their utmost to avoid conflicts of interest.  If not avoidable, they must fully disclose any potential conflicts in the advice offered. 

 

We believe that everyone deserves the opportunity to receive Competent, Trustworthy, and Affordable financial advice.  Therefore, we are committed to the fee-for-service hourly as-needed model to deliver that advice.  

 

We also realize this may not be a perfect fit for everyone. If you are looking for someone to use technical or fundamental analysis to provide intuition in the stock market, we will not be a good fit.  We don’t pick individual stocks, we don’t attempt to time the market, or otherwise, try to add value through prediction-based investment approaches.  We don’t sell insurance, annuities, or investment products.  We aren’t the right firm for anyone looking for those services.  Since we use technology extensively to help clients, we’re also not a good fit for anyone averse to using technology and tools.

Ideal Clients

Our ideal clients share many of the following qualities: 

 
  • They care for family, community, and someone, or something other than themselves.
  • They understand that we all have made financial mistakes, have an open mind, and are willing to learn.  
  • They are serious about making smart decisions with their money.
  • They are committed to collaborating on a written strategy and implementing it.  
  • They are disciplined and committed to following through.
  • They like having the simplest structure and the least number of accounts necessary to achieve the results.
  • They value a professional’s time and are willing to pay for it.   
  • They view us as a trusted resource for themselves, their family, friends, colleagues, and co-workers.

Contact Us

7035 Campus Dr., Suite 907, Colorado Springs, CO 80920

(719) 685-0600

admin@lodestarfp.com