About Northstar Financial Planners
Northstar Financial Planners is a fee-only investment advisor, devoted to a structured asset class investment strategy. This means three things, all of which are very important to understand how we deliver services to our clients:
Our sole source of compensation is a fee charged directly to our clients for asset management, financial advice and other investment services. We are not affiliated with any broker-dealer, and do not receive any commissions for selling a particular investment product. We believe that receiving a commission for selling an investment to a client represents an irreconcilable conflict between the best interest of the advisor and the best interest of the client.
Investment advisors are considered to be a fiduciary, which means we have a strict legal requirement to always act in the best interest of our clients. We believe our clients will achieve a better return over time from low-cost investments that do not charge a commission. We have not yet discovered a commissionable investment product that offers a higher expected return over time compared to low-cost, non commissionable investments with the same level of risk, even after accounting for management fees.
In our search for the best investment strategies for our clients, we have determined that a passive strategy focused on structured asset classes in a diversified portfolio of well-managed low cost institutional no-load mutual funds offers a better return over time, given a set amount of risk, than actively managing a portfolio by market timing and stock picking. Academic research, most notably by Eugene Fama at the University of Chicago, Gary Brinson et al and Roger Ibbotson et al, supports this conclusion.
Broker Dealer: A person or business effecting transactions in securities for the account of others. Merrill Lynch and UBS are large brokerage firms. TD Ameritrade and E-trade are online brokers. Management Fees: fees charged for management of the client's investments. A fee-based advisor will charge a management fee to the client based on a percentage of assets under management. There is also a management fee charged by the investment company for management of a mutual fund.