A 401(k) is an employer-sponsored retirement plan. If you get a 401(k) account as part of your benefits package, you may choose to contribute a portion of your salary to the account, subject to annual limitations. Your employer may even match a portion of your contributions. The money you save is invested in the stock market and grows over the years, to provide you with income in retirement.

Financial Advisors are uniquely qualified to help their clients reach different financial goals. Depending on their individual backgrounds and areas of focus, they can assist with Retirement Planning, Investment Allocation, Tax Planning, Estate Planning, Inheritance, and Health and Long-Term Care Planning.

The cost of a Financial Advisor can vary depending on how they charge their fees. At Deschutes Investment Consulting we are Fee-Only Advisors. Here are the three basic ways Advisors get paid:

Fee-Based

• Fee-Based Advisors combine commissions and fees as part of their payment structure. A client could pay an hourly fee for an investment plan, and then a commission on the funds recommended.

Fee-Only

• Fee-Only can mean a few things depending on the Advisor. They can charge a retainer fee based on the assets they manage (usually between 0.5-2%). A flat fee based on the services provided, or an hourly rate based on time spent.

Commission Only

• Commission Only means that the Advisor charges an upfront commission percentage based on the money invested.

1. What is your investment philosophy?
2. How do you get paid?
3. How will you measure and evaluate my performance?

A fiduciary is a person or institution given the power to act on behalf of another in situations that require great trust, honesty and loyalty. Fiduciaries are hired to act in your best interest and must set aside personal motives and conflicts of interest in favor of pursuing the best outcome for your unique situation.

Professionals who aren't fiduciaries are often held to a lesser standard, the so-called sustainability standard. This standard means that the products they sell you just have to be suitable for you, not necessarily ideal or in your best interest.

Anyone can say that he or she is a financial planner or advisor. That’s why it’s essential to be sure of the qualifications and credentials of any “planner” or “advisor” before you pay anything or entrust them with your financial present or future.

Fee-only financial planning means the advisor is compensated solely by the client. Other “fee-based” financial advisors may receive a commission if they recommend a specific investment, mutual fund, or insurance product.