From The Wall Street Journal:

Over the past 15 or 20 years, advisers have started charging annual fees—frequently around 1% to 2% of assets—rather than taking commissions on individual transactions. The motive was simple: Securities firms realized they could bring in a steady stream of income while avoiding regulatory concerns about running up commissions in investors’ accounts. And some advisers have been leaving brokerages to join the ranks of independent fee-only financial advisers.

This shift is a very important change in our industry.  BROKERS who charge fees have a much different motivation than an advisor who charges a percentage of assets.  It is important that your advisor has your best interest in mind and is working WITH you.  Although the commissions individually may seem small they can add up to a substantial amount over a long time horizon.

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