Northington Blog

The Rise of the Fee-Based Financial Advisor


Why are more investment professionals adopting this business model?

A major shift has occurred across the financial services industry. Over the past two decades, many financial advisors
have chosen to receive some (or even all) of their compensation through fees. Decades ago, the investment world was filled with stockbrokers who were paid with sales commissions. Those days appear to be ending with a shift toward advisory relationships. Today, many advisors conduct business using a fee structure. They may charge clients an AUM (assets under management) fee in exchange for supervising a portfolio. They may charge per-project or hourly fees for planning or consultation. The fee-based business model encourages a relationship. Instead of the transaction-based customer model common to the stockbroker era, the interaction is now between an advisor and a client who are truly on the “same side of the table.” The advisor plans with the client’s complete financial picture in mind, and the work is tailored around the client’s objectives and needs.

Stephen Northington is a CERTIFIED FINANCIAL PLANNER™ Professional with over 21 years of industry experience.  At Northington Investment Group, our branding message is financial comfort, measured by getting your entire financial house in order.  And our Wealth Management services are based on both performance and downside risk management. To schedule a meeting with Stephen, click here:

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.