One-hundred percent of our compensation comes directly from our clients, which ensures that our clients’ interests are our only interests. An independent and fee-only structure is the only way clients can be assured that when we make a recommendation, it solely because it is in their best interest. No broker-dealers, no proprietary financial products, no commissions.
Most large broker-dealers employ financial services professionals to broker and sell financial products. The firm generates a proprietary investment solution based on a few criteria gathered from the client. These investment solutions, although they may seem outside of the firm (non-proprietary), are ridden with hidden fees and contractual relationships with third party investment companies. Often clients will pay the fund company, the broker dealer, and the advisor, all before their return is generated, resulting in difficulty calculating the actual total cost. Advisors are compensated differently depending on the type of products they sell, and the ‘programs’/platforms they place clients inside. By default, the firm entices advisors to put clients into certain solutions, likely regardless of appropriateness, because it pays more. In addition, these advisors can be compensated by commissions, which can result in an unnecessary and non-prudent recommendation to buy or sell something, again, so that the advisor makes more money.
Instead, McDonnell Capital Management charges a fixed percentage of assets under management inclusive of all advisory services. The result is client-centered, customized solutions, with transparent, measurable costs.