December 14th, 2021 – Fragasso Financial Advisors has released a blog post detailing year-end compensation structures to avoid pitfalls. The article, which was written by Daniel Dingus, CFP(R), AIF(R), MBA, used Charles Dickens’s novella, A Christmas Carol, to highlight the unsavoury nature of compensation changes dictated by wire house firms this time of year.
As stated in the blog post, many financial advisors began their journey in the industry intending to help others achieve their financial goals. And to this day, a lot of them still advise and are guided by this goal, regardless of the structure in which they operate. But just like Scrooge felt when he evaluated the vision of the Ghost of Christmas Past, some advisors are met with nostalgia and regret whenever they look down memory lane to evaluate the progress they have made in their careers.
While nostalgia comes from looking back at how they worked diligently to build their book of business and client base from persistence and an unrelenting desire to succeed, regret seeps in once they are confronted with the fact that a lot of their efforts go unrewarded, and they are treated solely as a producer. This feeling of underappreciation can be felt annually when the new compensation plans and bonus structures are announced.
As Fragasso Financial Advisors pointed out, many brokers and financial advisors alike must deal with an ever-increasing production level that moves higher and higher and cuts pay-outs to fractions of what is reasonable and deserved. And just when it seemed like it couldn’t get any worse, minimum account sizes are being implemented that may limit or even eliminate advisor compensation from accounts of valued friends, family members, and the emerging young professionals who grow into considerable wealth later.
While it’s unlikely that the structure described above will change anytime soon, Fragasso Financial Advisors is giving advisors the chance to change the structure and mindset in which they operate. The company insists that by adopting its independent model, advisors would be released from the arbitrary compensation restrictions, account minimums, and nonsensical production changes. The Fragasso Independent Advisor Solutions model enables advisors to reach their full compensation and business growth potential all while guiding clients towards their financial goals under a fiduciary framework without potential bias.
Investment Advice offered by investment advisor representatives through Fragasso Financial Advisors, a registered investment advisor.
About Fragasso Financial Advisors
Fragasso Financial Advisors, Inc. is an independent, employee-owned, primarily fee-based investment management and financial planning firm. Founded in 1972, the firm today has $1.8 billion under management and non-advisory assets combined. Its unbiased approach allows it to act as a neutral party seeking investments that are suited to its clients and adhering to a fiduciary standard without the distraction of a provider’s preferred list.
Fragasso Financial Advisors
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Independent Echo journalist was involved in the writing and production of this article.