A financial planner who has a financial stake in the course of action recommended to a client faces an inherent conflict of interest and cannot be considered objective and unbiased. The vast majority of financial advisors in the United States are sellers of financial products. Some or all of their income depends upon steering their clients to a limited number of the thousands of financial products available today. Not only does this cause serious conflicts of interest, but it limits the options considered and compromises the quality of investment advice. Advisors who sell financial products include stock-brokers, analysts, insurance agents, accountants and attorneys, as well as financial planners. Many of their clients are not aware of their advisors’ conflicts of interest, or do not recognize its significance. (NAPFA. 2016. National Association of Personal Financial Advisors. Web. October, 2016).
Mosaic Financial Advisors is a fee-only Registered Investment Advisor. The term “fee only” means the firm may accept no referral fees, no finder’s fees, and no commissions for recommendations and advice. This compensation model is designed to minimize inherent conflicts of interest in the advisor/client relationship so the advisor may remain objective and the interests of client and advisor may remain closely aligned.