Over the last few years, Demming Financial Services Corp. has gradually been evolving into a predominantly fee-based organization, as most of you are already aware.
As a full-service financial planning firm, we are committed to serving the best interests of you, our clients, throughout all facets of life – from cradle to grave so to speak. In recent years, we have become more sensitive to the fact that after the accumulation phase of a person’s career ends, the distribution phase begins, where the focus is on retirement needs and preservation of capital. In recognition of this proactive yet labor-intensive approach, we have been emphasizing the entire life planning cycle, not just the accumulation portion.
Our revenue in the past has come from a combination of fixed retainer fees and assets under management. We feel that a transition to a more fee-based billing format will enable us to serve our clientele efficiently and effectively in the long term, while allowing us to be compensated whether or not investments are being made.
We believe trends are changing. We are getting older as a society and shifting from an accumulation period to a distribution period. This huge tidal wave of accumulated dollars will have to begin coming out from its tax-deferred status. All this translates into increased work and time for us and hopefully increased benefit to you.
As a financial planning firm that accepts its fiduciary responsibilities, we think that the trend toward a fee-based format is inevitable and appropriate.