Operating As A Fee-Only Fiduciary Advisor Paid Only By Our Clients Since 1989
Fiduciary is a legal term defined by the Investment Advisers Act of 1940 and regulated by the SEC that simply means always acting in the best interest of our clients when we offer financial advice. Fee-Only means that we are only paid by our clients for our financial advice – we do not have a mortgage, insurance, banking, or accounting business. We also do not accept referral payments from CPA, attorneys, or insurance agents.
This is, in our opinion, the right way to operate – you know as a client that there is no hidden incentive behind any of our recommendations about your financial life. We believe in sitting on the same side of the table with you and operating in your best interest at all times.
How are some other financial firms different from HB? Banks and brokerages often operate under the “suitability” standard instead of the fiduciary standard. Banks and brokerages have less than transparent compensation systems that you may not be aware of where your advisor may be paid extra money to recommend certain funds or investments (or loans or insurance of other financial products). If the internal investment product offered by the advisor’s employer is “suitable” for the client, they can recommend it even if they know it is not actually the “best” option for the client in terms of cost or performance. Banks and brokerages have lots of hidden compensation systems where your advisor is being paid extra money to recommend certain funds or investments (Registered Investment Advisers). Even some of our fellow RIAs (registered independent advisors) claim to be fiduciary independent advisors but then happen to have an insurance business or accounting business or mortgage business.
Homrich Berg was founded as a Fee-Only fiduciary firm in 1989 and we have never changed our view – we believe in our approach, and our clients value the peace of mind that comes from knowing that our transparent client service model puts us on the same side of the table working together for their best interests.