Independent, Performant Fee-Only and Fiduciary Financial Specialist

07/11/2022

A performance fee is a payment made for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits. Expat Wealth at Work charges 0.4% performance fee.

We are not like everyone else. As a strictly Performance Fee-Only adviser, we don't earn commissions from financial product sales. In fact we don't sell any financial products at all. We provide clear and competent financial planning services, focusing on expat clients, along with investment management and integrated financial services. We have clients all over the world. Our client's accounts are held at various custodians such as Banque de Luxembourg and we manage those investment portfolios using individual securities, mainly publicly traded stocks and bonds. Our mission has been serving our expat clients, while maintaining our fiduciary responsibility as PERFORMANCE-FEE ONLY FINANCIAL ADVISER; acting on their behalf, as we would for ourselves.

What Is a Performance Fee-Only Financial Adviser?

The first step towards getting financial help is recognising that you need it. The second step is figuring out exactly why you need help. Do you need help with your retirement savings? Do you want to start investing? Answering those questions will lead you into the third step: finding a financial adviser. This step isn't easy with so many financial salesmen out there. But a good start would be to find yourself a Performance Fee-Only financial adviser.

Performance Fee-Only financial advisers are exactly what they sound like. They are financial advisers who operate on a performance fee-only basis. This means that only you, the client, pay the compensation for the adviser generating positive returns. Performance Fee-Only financial advisers work according to their fiduciary responsibility, meaning they must act in their client's best interests. This is made easier and less complicated by their payment structure. Performance Fee-Only advisers don't receive any fees, commission, referral fees, kickbacks or any other hidden forms of compensation.

If you are wondering about the alternative to Performance Fee-Only advisers, there are two alternatives. One alternative is a financial salesman who is paid by commission. These salesmen earn their income based on the products they sell and the accounts they open. In this setup, more of the right transactions equals more money in their pockets. Companies like brokerage firms, insurance companies and mutual funds firms pay commission fees to these advisers.

The second alternative is a fee-based financial adviser. This term is often confused with Performance Fee-Only advisers, but the two types of advisers operate differently. Fee-based advisers charge their clients a fee in addition to collecting commissions.

The best part of working with a Performance Fee-Only financial adviser is knowing that they are there to serve your best interests. They are there to help you out with your finances and not their own. Performance Fee-Only advisers don't rely on what they sell to you to make money. They must operate as a fiduciary, guaranteeing they will work for your best interests. They won't push a product or strategy that doesn't serve you best financially.

Without any ties to specific companies, Performance Fee-Only financial advisers are free to offer a wider array of solutions to help you reach your goals. On the other hand, commissioned financial advisers limit their suggestions to products that will earn them money. Some are even tied to specific services their company provides, meaning you won't get the holistic advice of a Performance Fee-Only adviser.

Another benefit is the range of services they can offer without overcharging you. This means they can help you with as little as one investment or develop a complete financial plan, and you won't have to overpay.

Performance Fee-Only financial advisers charge their clients in a different way. This is called "assets under management," where your adviser takes a percentage of the assets they manage for you IF they generate positive returns for you. They don't charge an hourly or monthly rate.

When it comes time to find your financial adviser, a good place to start is asking your colleagues, friends and family. It's especially important you ask people who are in the same financial situation as you. That way they can recommend the right kind of adviser.

A Certified Financial Adviser does have advisory qualifications. Being a CFP doesn't guarantee Performance Fee-Only, but it does guarantee the most educated, experienced and ethical advisers. Once you've narrowed your list to 10 or so potential advisors, you'll want to do your homework to find the best fit. If possible, set up an initial meetings before signing a contract. This meeting, a kind of interview, provides an opportunity to ask key questions of your potential adviser. Ask about their experience, education, any criminal background, their specialty, their services and anything else you find relevant.

Before you get overwhelmed with your financial adviser search, it's a good idea to start with the Performance Fee-Only advisers. That way, you have a guarantee the advisors you begin with will already have a fiduciary responsibility. You also know that they won't have any incentives to sell you a product or service for their own gain. Performance Fee-Only financial advisers offer the best payment method of financial advisers. Getting good financial advice may seem expensive, but it will be worth it when your finances are successfully managed and planned.

Before you dive into the directory looking for a financial advisor, you will need to determine what it is you want from an adviser. Are you ready to get into investing? Do you want the advisor to manage your investments for you? Do you need help creating a budget? When you've pinned down what you need, you can start your search. Again, you might want to start by looking at Performance Fee-Only financial advisers, since they are guaranteed to act as a fiduciary and won't base their services on commissions. You may want to ask friends and family or read reviews to get a better idea of what an advisor should and might offer.

You have more to manage than your wealth.

Our goal is not solely to serve our expat clients' needs, but to ensure their wealth serves their needs. We are a distinctly independent firm offering comprehensive wealth management and investment planning experience in a specialist practice structure. That gives us the flexibility and intellect to position clients for managing life's milestones - long before they happen.

In building our relationships, we listen, discuss, collaborate, and clarify. We combine that understanding with a thoroughly detailed inventory and analysis of all client assets and financial resources. This holistic approach allows us to build an effective wealth management plan that shares our client's vision for success, so they can forget about the financial details and pursue a life well-lived.

Next Steps...

We offer a NO OBLIGATION initial confidential consultation, contact us today: info@expatwealthatwork.com