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Issues of potential ethical problems in rewarding your financial advisor can be largely eliminated with todays fee structure options. The most important factor to look for when searching for a potential advisor is objectivity. This can usually be ascertained by observing how your financial advisor is compensated. Today, many advisors offer asset-based fee structures as opposed to commission-based fee structures. In other words, your advisor does not have to generate transactions in order to get paid. The advisor is paid a fee equal to a percentage of your assets. Usually, this fee begins around 1% of assets and decreases as your portfolio size increases. The advantage of this fee structure is that it aligns the interests of both the advisor and the client - both are aiming to increase the size of the portfolio. Further, the fee structure inherently accounts for factors like taxes and fees so that your advisor is generally incentivized to reduce both of those factors as well.

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