By Gary O. Clement

Truth be told, Im not sure the issue of how their advisors may be compensated even dawns on many prospects or clients. But, trust me, it is one of the key issues financial services prospects and clients must understand when seeking financial advice. Understanding this issue sheds light on your advisors motivation, recommendations, and your ongoing relationship.

Lets face it, the entire landscape of financial services and their delivery has changed. In the past two decades, alone, the Glass-Steagall Act has fallen, there have been major advances in technology and communications, and, of course, the internet has democratized access to information. The settling dust has revealed a transformed financial services industry.

New competitors have entered the industry, consolidation has created financial supermarkets, product offerings have exploded, and, yet, its still a sales profession — one where the traditional methods of compensation have changed dramatically, as well.

What once was a transaction oriented industry compensating advisors solely via sales commissions, has slowly morphed into a more consultative industry with many different forms of compensation. Commissions, fees for assets under management, hourly fees, and fee and commission combinations are all ways that advisors can be compensated today.

Which is best? There may not be a right answer, except the one thats right for you. What is vital, though, is that the advisor you are considering fully discloses how they charge, that you understand the pros and cons of each form of compensation, and that you chose the arrangement that best suits you.

COMMISSIONS

Commission based advisors are compensated by the commissions that are contingent on the purchase or sale of financial products. In other words, your advisor only gets paid when you buy or sell something. This approach may create a conflict of interest because the advisor may be tempted to push securities or products that may not be in the best interests of clients.

FEES FOR ASSETS UNDER MANAGEMENT

Fee Only advisors charge an annual fee based on a percentage of the clients invested assets that the advisor is managing. Some say this removes the conflicts of interests inherent in commission based arrangements. But, others say that advisors would be tempted to keep as much money under their management as possible, even when it may be best allocated elsewhere.

HOURLY FEE

Hourly consultation fees are simple arrangements that may best serve those needing limited advice. The hourly approach is flexible and removes conflicts of interest, but does not encourage a long term relationship between advisor and client.

FEE AND COMMISSION COMBINATIONS

Under this arrangement, an advisor may charge a fee for some service, such as developing a financial plan, and charge commissions on financial products bought or sold. The drawbacks of this are similar to those of a commission based advisor. Is this a lot to consider? It may be. But, after finding an advisor who is competent, objective and ethical, it may be the last thing youll need to consider. Bottom line: What feels right for you and the working relationship youd like to develop with your advisor, regardless of the type of compensation, is ultimately what will be best.

Gary O. Clement, CFP® is President of Clement Asset Management, a financial planning and investment management firm.

Tags: Financial Advice, Financial Services

By Gary O. Clement

Truth be told, Im not sure the issue of how their advisors may be compensated even dawns on many prospects or clients. But, trust me, it is one of the key issues financial services prospects and clients must understand when seeking financial advice. Understanding this issue sheds light on your advisors motivation, recommendations, and your ongoing relationship.

Lets face it, the entire landscape of financial services and their delivery has changed. In the past two decades, alone, the Glass-Steagall Act has fallen, there have been major advances in technology and communications, and, of course, the internet has democratized access to information. The settling dust has revealed a transformed financial services industry.

New competitors have entered the industry, consolidation has created financial supermarkets, product offerings have exploded, and, yet, its still a sales profession — one where the traditional methods of compensation have changed dramatically, as well.

What once was a transaction oriented industry compensating advisors solely via sales commissions, has slowly morphed into a more consultative industry with many different forms of compensation. Commissions, fees for assets under management, hourly fees, and fee and commission combinations are all ways that advisors can be compensated today.

Which is best? There may not be a right answer, except the one thats right for you. What is vital, though, is that the advisor you are considering fully discloses how they charge, that you understand the pros and cons of each form of compensation, and that you chose the arrangement that best suits you.

COMMISSIONS

Commission based advisors are compensated by the commissions that are contingent on the purchase or sale of financial products. In other words, your advisor only gets paid when you buy or sell something. This approach may create a conflict of interest because the advisor may be tempted to push securities or products that may not be in the best interests of clients.

FEES FOR ASSETS UNDER MANAGEMENT

Fee Only advisors charge an annual fee based on a percentage of the clients invested assets that the advisor is managing. Some say this removes the conflicts of interests inherent in commission based arrangements. But, others say that advisors would be tempted to keep as much money under their management as possible, even when it may be best allocated elsewhere.

HOURLY FEE

Hourly consultation fees are simple arrangements that may best serve those needing limited advice. The hourly approach is flexible and removes conflicts of interest, but does not encourage a long term relationship between advisor and client.

FEE AND COMMISSION COMBINATIONS

Under this arrangement, an advisor may charge a fee for some service, such as developing a financial plan, and charge commissions on financial products bought or sold. The drawbacks of this are similar to those of a commission based advisor. Is this a lot to consider? It may be. But, after finding an advisor who is competent, objective and ethical, it may be the last thing youll need to consider. Bottom line: What feels right for you and the working relationship youd like to develop with your advisor, regardless of the type of compensation, is ultimately what will be best.

Gary O. Clement, CFP® is President of Clement Asset Management, a financial planning and investment management firm.

Tags: Financial Advice, Financial Services

By Marilee Veniegas-Essential Security Software

What types of information are shared? When accounts are opened or transferred as an individual or SMB, personal identifying information is inevitably transmitted between you and your financial services representative (and sometimes their support staff). This information includes and is not limited to:

* Name
* Address
* Social Security Number
* Account Numbers (e.g. when doing a rollover or transferring banks or credit cards)
* Date of Birth
* Employment History and Income
* Current Assets and Portfolio information

Much of this information is done in person or online via a secured website, but often SMBs and individual clients look to their brokers, account representatives and customer service personnel to answer specific questions to their accounts. More and more, these information transactions take place electronically.

How can client information be at risk if the paperwork is taken care of safely in person or via a secured web process? Personal financial information (PFI) can be compromised as a one-on-one relationship with your financial services professional grows and builds. Sometimes connecting with a financial services firm is done on the phone, other times via email. Its the security of email communication between client and firm/organization where your PFI is put at risk.

A quick question or message sent off to a financial services organization appears to instantaneously pass from your computer to the recipients inbox. In reality, email messages make transitory stops along the way. As emails are directed by proprietary servers to their final destination, messages which arrive at each of these stops are often stored, and sometimes copied or even scanned before being sent on to their final destination. Email security goes beyond being aware of the current phishing scheme, where unscrupulous data thieves pose as someone from your trusted financial institution. Information interception isnt just about who forwards your message on, but is also about who may seize that message when its en route.

Financial firms though guided by government acts, restrictions and guidelines sometimes dont appear to have concrete policies when dealing with email between client and the firms employee. Compliance and risk officers to who manage the firms policies must deal with nuances outlined by Sarbanes-Oxley, Gramm-Leach-Bliley Act, and Securities and Exchange Commission (SEC) regulations. Each of these governmental mandated policies dictate how your personal financial information (PFI) is handled digitally, but dont delineate the best method of PFI protection.

Andy Purdy, acting director of the National Cyber Security Division of the Department of Homeland Security in a February 2006 interview with CNet/News.com identifies the importance in protecting PFI and other important digital assets:

'I think consumers and small businesses and large enterprises and the government are all important when trying to reduce the cyber-risk. Were trying to raise awareness with partners of the responsibility and techniques consumers can use to help secure their systems.' (1)

A clients PFI is a commodity which can be bought and sold on black market data warehouses. Digital thugs look to harvesting email information in a variety of means. What can individual clients and SMBs do to ameliorate the situation while staying connected to their financial services firm? Data encryption easily facilitated process of securing sensitive information like PFI. If one of these black market digital thugs happens to intercept an encrypted message (unless they have somehow gotten the encryption keys) they will not be able to decipher the message. If the email thug attempts to break any one of the commonly used encryption algorithms, they likely wouldnt be able to do so within their lifetime.

Business owners and individual investors can work a lifetime to become financially successful and stable. Having sensitive information like ones PFI at risk via email can shatter that financial stability.

Risk in communicating with these services can be contained through being aware of email risks, phishing scams and using encryption tools to secure financial communiqué. Though quite broad in nature, Financial Services in each of its facets as lender, investment manager or funding arm can take an additional step in their clients economic success. Using encryption tools enables the individual client or SMB to stay in close contact with these stewards of their financial future.

- - - - - - - - -

End Notes:

1.) Joris Evers, 'Newsmaker: Locking down Americas Net defenses' 16 February 2006, CNet New.com - http://news.com.com

Ms. Veniegas is an alumni of the University of Washington. Marilee joined the Marketing team at Essential Security Software, Inc. in 2005. She also serves as one of the ESS site editors for 'I Want My ESS!' a stolen work and Small/Meduim Business (SMB) resource site.

Tags: Financial Information, Financial Services

By dan noyes

"Whether you live in Alaska, Ohio, Texas, or Rhode Island, your ability to plan your financial future just got easier. You can now avail of the services of Paladin Registry, to get in touch with a financial advisor to help with retirement, estate, and tax planning, take investment decisions, and educate you on the best investment options available.

Paladin Registry enables you to contact financial professionals, who have proved their knowledge, competence, and integrity can be compensated with a fee or commissions, enjoy the status of investment advisors, and can deliver valuable wealth management services. Paladin Registry profiles four types of financial professionals- financial planners, financial advisors who provide non-discretionary investment services, investment managers who provide discretionary investment services, and a fourth type of professional who provides a combination of all three services. Financial professionals registered with Paladin do not sell financial products.

With Paladin Registry, you reduce the risk of acting on a bad advice, spending money to locate and screen financial advisors, spending a lot of time getting information from professionals, and eventually losing money on investments. The people who contact Paladin Registry include ordinary investors or trustees. Most of the financial professionals registered with Paladin provide project, planning, advisory, and management services, which mean that they work on a particular time-bound project or plan, provide advice, or help with the management of funds.

When financial professionals apply for entry in the Paladin Registry, they have to provide information on their background, experience, any problems with compliance, and any conflict of interest issues they may have. Only those financial professionals who provide a record of investor-friendly business practices, competence, and integrity are given a high rating. Financial professionals are encouraged to be honest when providing information, since this information will be shared with investors.

When you look for advisors on the Paladin Registry Web site, you only need to indicate the areas in which you need advice. You also need to provide contact information, so that your financial advisor can get in touch with you. You do not have to pay any fees for this service. Based on the information you provide, Paladin matches you with a financial advisor who can contact you frequently and help you invest your money, wisely.

So if you are on the lookout for honest financial advice on retirement, estate planning, taxes, or any other financial issue, why not get in touch with Paladin Registry
"

"Dan is a well know author in the field of finance and investment. He has authored many articles which are very popular in many of the portals over the internet.
"

Tags: Financial Professionals, Financial Services

By Jay Moncliff

Managing your money is one of those complex areas in life that benefits form the help of experienced professionals. The intricacies of banking, asset and wealth management are so complex that if you find them a little overwhelming, you might benefit from the help of a financial services firm. Below you will find a short list that just begins to describe the many different financial services on offer for you to choose from.

Financial Services #1 Wealth Management
Individuals with a high net worth often need professional assistance to manage their money and maintain the value of their assets. Those that use such financial services assistance succeed, whilst those who don't often find their net worth diminishing over time. There is no secret to this individuals who maintain and increase their wealth more often than not do so with the help of financial services.

Financial Services #2 Investment Banking
The creation of capital through intelligent investment is the main goal of investment banking. This is another area that many individuals use to maintain and increase their net worth.

Financial Services #3 Asset Management
With a diverse array of assets forming the largest part of most people's portfolios, many individuals prefer to use professional financial services in the form of asset managers to competently handle their cash, property, bond, and stock investments.

Financial Services #4 Business Banking Services
Businesses also need assistance with financial services, and business banking is an important part of the wealth management sector. Business banking provides management options in relation to managing accounts (receivable and payable), income, payments, loans, and many other areas of operation crucial to business success.

If you are concerned or interested in personal or business wealth and investment management, the first step is to contact several financial services providers. But remember to shop around comparing what's on offer is important so you can make the best decision for your own situation.

Jay Moncliff is the founder of
http://www.financialadviseonline.com a website specialized on Financial Services, resources and articles. This site provides updated information on Financial Services. For more info visit his site: Financial Services

Tags: Financial Services, Manage Money

By Dan Noyes

Financial management services are the services offered by various financial institutions such as banks, insurance companies, investment banks, etc., to help individuals or corporations in achieving their financial goals, in terms of accumulating greater wealth and future financial security.

There are a number of financial management services companies offering a diverse portfolio of services to suit different financial requirements of their clients. In order to accomplish the task, these companies provide the assistance of professional financial advisors. These financial advisors help individuals or corporate manage their wealth appropriately.

Some of the financial management services for individuals offered by financial management companies include:
1. Account Management: It includes opening or closing of different types of accounts, transfer of funds, etc.
2. Investment Solutions: The financial advisor helps the individuals diversify their portfolio through alternative investment plans, mutual funds, equities, and even save for retirement through annuities.
3. Financial Planning: The financial management association offer financial planning as a major part of their diverse portfolio of services. They provide individuals with personal financial advisors who plan their current expenditures and save for future short-term or long-term goals by analyzing different options available.
4. Retirement Planning: The financial advisor guides their clients in planning for their financial requirements after retirement, by helping them identify goals, researching and analyzing different opportunities to secure funds and make investments to suits their needs.
5. Wealth Management: The financial management services companies offer services to manage their clients' current assets and liabilities through investments as in life insurance, growing wealth to address the individual's future needs by analyzing risk factors in different investment plans, and preserving wealth for a secure future.

Services offered for corporate organizations include:
1. Corporate Cash Management: The financial advisor helps identify various taxable and non-taxable investments, such as discount rates, auction rate preferred stock, etc.
2. Corporate Stock Benefit Plans: These are to help the corporate clients retain their efficient employees.
3. Investment Banking: The financial management services companies help their corporate clients meet their future business requirements by investing in various investment plans.
4. Account Transfer: The companies provide quick account transfer services to their corporate clients, to maintain a normalcy in business functioning.

This is not a comprehensive list of services. They may differ from one financial management company to another. One can select the services according to their requirements - personal or professional.

Dan Noyes is a well know author who writes various articles on Finance related topics. His articles are published on very popular online portals on Internet.

Tags: Financial Management, Financial Services