ESCIENT FINANCIAL INSIGHTS

A commission-based financial advisor earns money by selling financial products, such as mutual funds, annuities, bonds, or insurance policies. These products come with fees that generate profits for the investment company and commissions for the advisor. This structure creates a potential conflict of interest: the advisor may recommend products that generate higher commissions rather than those that offer the best value for you.

For example, a mutual fund may be suitable for your financial goals, but a comparable, lower-cost alternative—such as an ETF—might not be recommended because it offers a smaller commission. Additionally, some advisors receive bonuses and incentives for selling specific products, further complicating the alignment between their recommendations and your best interests.

One of the best ways to ensure you are receiving objective financial advice is to choose a fee-only financial planner. Fee-only financial planners:

• • • Are paid directly by their clients, eliminating conflicts of interest tied to commissions or third-party incentives.

    • Do not earn money from selling financial products, ensuring their advice is unbiased.

    • Focus on minimizing investment costs, which can significantly improve your portfolio’s long-term returns.

It’s important to note that "fee-only" is different from "fee-based." Fee-based advisors may charge clients a fee while also earning commissions on certain products, particularly insurance policies and annuities. Only fee-only financial planners are truly independent of product-based compensation.

To determine if a financial planner is fee-only, consider the following:

• • • Professional Affiliations: NAPFA members and members of the Fee-Only Network adhere to strict fee-only standards.

    • Transparency: A true fee-only planner will openly state their fee structure on their website and in client communications.

    • Direct Inquiry: You can always ask a financial planner directly if they operate as a fee-only advisor and whether they receive any commissions.

Escient Financial is committed to providing transparent, unbiased financial planning and investment advice. As a fee-only investment advisor registered with the State of California, priority is given to your financial well-being over all else.

If you are looking for a financial planner who will put your interests first, schedule a FREE introduction meeting today.

The information in this material is not intended as investment, tax, or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Digital assets and cryptocurrencies are highly volatile and could present an increased risk to an investors portfolio. The future of digital assets and cryptocurrencies is uncertain and highly speculative and should be considered only by investors willing and able to take on the risk and potentially endure substantial loss. Nothing in this content is to be considered advice to purchase or invest in any security, digital assets, cryptocurrencies, or any other investment. Some content may be developed from sources believed to be providing accurate information.