Category Archives: Commissions

Pay No Commissions

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New clients to Korving & Company will pay no commissions on stock and ETF trades when they open an account with us between June 16th and December 31st 2016.

We use Charles Schwab as our custodian and Schwab has made this limited-time promotion to encourage new clients to open accounts with RIA’s like Korving & Company.

The promotion is called “Make the Move” and it’s designed to:
• Give you an opportunity to experience the value and benefits of working with us.
• Execute commission-free trades to offset the cost of realigning assets to one of our portfolios.

Contact us for more information.

The Fiduciary Rule and You

The Department of Labor (DOL) has issued its final version of the fiduciary rule regarding retirement accounts.  The issue that the DOL is trying to address is that broker-dealers (major investment firms like MLPFS, UBS, etc.) do not have to act in their clients’ best interest.  They only have make recommendations that are “suitable.”  What that means is that if a broker-dealer representative has the choice between recommending two investments, they can recommend the one that pays them more, as long as the recommendation is suitable. That may not be in the client’s best interest.

The “fiduciary” standard requires an investment advisor to recommend the investment that is in the best interest of the client.  That often results in lower costs to clients.  Korving & Company is a pure RIA (Registered Investment Advisor) and is a fiduciary.   We do not offer commission-based products and offer our clients the lowest cost versions of appropriate investments.

The DOL rules apply to retirement accounts like 401(k) and IRAs.

For questions about the fiduciary rule, contact us.

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Questions to ask when interviewing a financial advisor

A previous post referred to an excellent article on CNBC about financial advisors .  You first have to consider what kind of financial advice you want or need.

Once you determine the kind of advice you’re looking for, here are some key questions to ask when interviewing the financial advisor.

  • What are the services I am hiring you to perform?

  • What are your conflicts of interest?

  • Identify for me all of the ways you or your firm are compensated by me or by any other party in connection with services rendered to me or my assets.

  • Do you have a fiduciary duty to act in my best interests?

  • Describe your insurance coverage.

We’ll add a few more of our own:

  • What is your investment philosophy?
  • Do you do your own investing or do you use outside firms?
  • What kind of experience do you have?
  • Are your other clients similar to me?

If you don’t get straight-forward answers to these questions, go on to your next candidate.

Feel free to ask us questions.

 

How Do I Start Saving and Making My Money Grow?

We contribute to several forums that provide advice to novice investors. One of the most popular questions goes like this:

• I’m 28 and will start a new job soon. I have accumulated $10,000 in a savings account and will be able to save an additional $1000/month when I start my new job. I need advice on how to start an investment plan.

It’s a good question. The person asking it usually has some money in the bank and has enough income to add to his or her savings. But because interest rates are so low the savings are not growing. There are three common reasons for not starting an investment program.

Not knowing where to start. The mechanics of opening an investment account can be complicated.

Fear of making a mistake. People work hard for their money and don’t want to lose if because they made some rookie error.

Not knowing who to trust. Who will provide good, honest advice for you?

Here’s how to begin an investment plan that works for people of all ages.

  • Find a Registered Investment Advisor (RIA) who is a fiduciary: who put their clients’ interests ahead of their own and provide unbiased investment guidance. They will help you through the process.
  • Find someone with experience. You don’t want to deal with someone who’s learning with your money.
  • Find someone who is accredited. A CFP™ (Certified Financial Planner) is trained to give advice on all aspects of financial planning.
  • Find someone who does not charge commissions. It eliminates conflicts of interest.
  • Find someone who has a good reputation in the community.

At Korving & Company, we’ve been helping people just like you make better decisions about their money and their lives for thirty years.

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Merrill Lynch to Clients: Join “One” or Pay Commissions (via Financial Advisor Online)

The largest investment firms are moving their clients to their fee-based platforms.  Most of the other firms are doing the same.

There is nothing wrong with fees rather than commissions.  In fact, we believe that fees are preferable for most investors.

But they are not always the right, or the lowest cost, option for some.

For clients who have less than $1 million, the fees with “One” are often higher than they can get elsewhere.

If you are a customer at one of the “Big Box” stores and want to shop around to see if you can get better service and perhaps a better price.  Check us out.

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