Hi Al and others,

I know your busy and probably dont have much time to read through all my ramblings so I will TRY to be brief.

Besides, I need to slow down, I see my moniker on like the last four posts, and dont want to pollute the forum :o)

Here are some of your quotes from the other post.

"I can honestly tell you that most folks do not zero in on costs."

"Nobody discussed the cost. Neither sister, one here and one outside Philly, asked about the cost of what was happening. Now I did not bring it up as I was dealing with trust document and the ins and outs. Never has either sister ever to my knowledge asked about cost."

"It would not occur to me that there is a free lunch somewhere. I suspect most folks figure someone is paid somehow."

I just wanted to share some thoughts and my experience with you and others.  I posted a similiar version of my story a while ago on this forum, I believe.

I think once a relationship and trust is established then it may not be so important to zero in the costs of every little thing. However, I think at the onset, that it is important for the client to understand HOW it is you are compensated. I am sure this is not a problem for you, like you said they have to figure your paid somehow.  The problem is, they should not have to "figure somehow".  It should be clear.

Many moons ago I took a financial planning course offered through an extension of the local community college. The guy who taught the coarse was a financial planner and a great teacher and really nice guy. The course was worth every penny and then some as it changed the course of my life. At the end of the course he offered all participants a "FREE" consultation at this office. Pretty smart tactic to steer us newbies to his office. Naturally, we took him up on it. Went back for a second follow up visit. Rolled over 401k, Started Roth, Purchased Term Life Insurance. Now ofcourse, I expected to pay for these services. The guy was great, I did not expect this for free. I was more than willing to pay. So I waited and waited to receive the bill, because I always pay my debts promptly. I waited and waited. No bill. He never offered explanation at initial visit of how he would be paid and I never asked. I should of asked, yes. The "idea" that the initial consulation was free led me to believe that I would be paying for his time on an hourly basis or something like that, but never asked, he never offered.

I still feel today that this guy for the most part did right by me. Out of the products he sold, he did right by me. He did not push whole life on me, he sold me suitable share classes, like I said the guy was great!

It just did not click with me, perhaps I was naive. I still could not beleive he did not send a bill, how does this guy make any money? The practice of AF not showing the load on statements (that has changed now) and using MOP instead of NAV worked and the cost eluded me.

I came across the term no-load funds a few times and became curious what it meant. Researched on web, I discovered how this guy was paid. Ofcourse he deserved it, but I felt "hoodwinked", "tricked" since he did not tell me this. Yes, I did not ask, my mistake. I would of had no problem with this, I did expect to pay him for his services.  I checked my AF statements, I could not figure it out.  Back then I dont remember the footnotes they use now.  I discovered how to read the statement with the MOP.  I felt taken like they were trying to fool me.  It was not the amount of money, it was the way they acquired it, through what I percieved at the time, as deception.

It was this web search that started my journey of discovery and to becoming an informed investor. If he had disclosed how he was paid, I would not of ran for the door, I expected to pay. I might of never done that search, I might of never stopped investing in AF funds.  It was the bitter feeling that made me keep searching for more information, the continous search then uncovered understanding for his way of being compensated and the bitterness faded (he is a nice guy), then the search continued uncovering a joy, a yearning, a true love I have of this topic of investing.  The search continues to this very day, years later.

I realize that your not this guy and my story probably does not apply to you and your relationships. I also understand you were talking about the actual costs of things and not necessarily HOW you were paid, as your customers may already understand this. I just thought you might appreciate the fact that if he had disclosed up front I might still be investing with him today. He is still the advisor on record, enjoying the trail fee, on my small pile of existing AF money.  However, as I ramp up my savings/investments to unprecedented levels, he is not participating in that joy!

Thats my story, and I'm stickin' to it.  Hope you enjoyed it.

The very best to you, Al.

Brian