We differ from larger firms and other financial advisory firms in a number of ways. First we are primarily compensated by fees paid by our clients thereby allowing us to work in our clients’ best interests. In other words we act in a fiduciary capacity when advising our clients. Unlike our competitors — who may receive the bulk, if not all, of their compensation from commissions on the products they recommend, the majority of the compensation we receive comes solely from our client. In addition, many times when you are working with a purely commission-compensated individual, there are hidden commissions and compensation fees, which are not transparent.
By law, brokers and advisors who are employed by a sales organization are required to work in their firm’s best interest. In these situations, the individuals that represent these firms have an incentive to recommend high-cost products that may or may not be in your best interests.
Banks and brokerage firms sometimes provide some of the same planning and investment services as NewFocus Financial. However, the advisory fee charges are frequently at a higher cost and are provided without an understanding of their clients’ overall objectives.
In comparison to brokerage firms, we do not underwrite individual securities that we purchase for our clients, nor do we have proprietary products to sell (mutual funds, etc.). As a result we have no incentive to recommend or to buy a particular equity or mutual fund to a client.
Finally, we focus on our client’s entire financial situation. This means that we integrate every aspect of your financial and investment management plan.
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