Light Financial Services - Fargo
Independent Fee-Only Financial Planning
Light Financial Services is an independent, fee-only financial planning and investment management firm. Our goal is to provide clear and unbiased financial planning and investment management services to our clients.
As defined by the College for Financial Planning and the National Association of Personal Financial Advisors, fee-only financial advisers are compensated solely by the client. We believe the fee-only model of compensation reduces the potential for conflicts of interest between the adviser and the client because the adviser is not compensated by insurance companies, particular investments, and/or other financial companies.
A clear distinction should be made between brokers, who often refer to themselves as "fee-based" (receiving both fees and commissions) and "fee-only" (someone who never receives compensation or incentives from a third party.)
A fee-only adviser may reduce conflicts of interest such as:
- an incentive to make recommendations that pay higher sales commissions to the adviser when a less expensive alternative may have been available.
- an incentive to generate commissions through the unnecessary buying and/or selling of securities (also known as churning).
- an incentive to convert non-cash assets such as real estate and collectibles to cash and securities so that the adviser can generate a commission.
- advising a client to buy products and make investments when holding cash and other liquid assets may have been a more suitable recommendation at that time.
Because we are an independent, fee-only firm our only obligation is to our clients. We work with a variety of clients and provide fee-only financial planning and investment advice to individuals and families regardless of their income level, net worth, or investment assets.
- Objectivity – We are fee-only and independent our only incentive is to generate good results for our clients. Our interests are aligned with yours.
- Diversification - We believe in diversification in order to reduce asset class risk.
- Discipline - Our discipline is based on rational decision making rules and asset allocation. This mitigates careless decision making and emotionally based decision errors.