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MONEY MATTERS > And More Money Matters! > MOM 7

How are Financial Advisors Compensated?

How are financial advisers compensated?

When it comes to compensation, advisors fall into four categories:

• Salary based--You pay the company for which the advisor works, and the company pays its advisors a salary

• Fee based--You pay a fee based on an hourly rate (for specific advice or a financial plan), or based on a percentage of your assets and/or income

• Commission based--The advisor receives a commission from a third party for any products you may purchase

• Commission and fee based--The advisor receives both commissions and fees

You'll need to decide which type of compensation structure works best for you, based on your own personal circumstances.

When is it time to consult a financial advisor?

In many cases, a specific life event or a perceived need may prompt you to seek professional financial planning
guidance. Such events or needs might include:

• Getting married or divorced

• Having a baby or adopting a child

• Paying for your child's college education

• Buying or selling a family business

• Changing jobs or careers

• Planning for your retirement

• Developing an estate plan

• Coping with the death of your spouse

• Receiving an inheritance or a financial windfall

In these situations, a financial professional can help you make objective, rather than emotional, decisions.

However, you don't have to wait until an event occurs before you consult a financial advisor. A financial advisor can help you develop an overall strategy for approaching your financial goals that not only anticipates what you'll need to do to reach them, but that remains flexible enough to accommodate your evolving financial needs.

Paul A. Pouliot CFP®, CHFC®, CASL®, Financial Advisor, An Ameriprise Platinum Financial ServicesSM practice, Ameriprise Financial Services, Inc.

116 South River Road | Bedford, NH  03110

Office: 603.296.0030 | Fax: 603.296.0028