Let’s talk about something most investors don’t realize:

A lot of advisors sound like they’re putting your interests first…

But behind the scenes?

They’re cashing commission checks and selling products you don’t need.

At Compound Advisory, we act as fiduciaries all the time — legally, ethically, and in practice. No exceptions, no fine print.

But that’s not how the rest of the industry works.

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The Fiduciary Loophole You’ve Never Heard Of

Many advisors call themselves “fiduciaries,” but here’s the trick:

They only act like one some of the time.

They wear two hats:

•The Fiduciary Hat when they’re giving investment advice.

•The Sales Hat when they’re selling products (like annuities, insurance, or commission-based funds).

And they get to decide when to switch. Convenient, right?

They don’t have to recommend what’s best for you — just what’s suitable enough.

It’s like a doctor saying,

“Technically, this medication could work for your condition… also, I get a fat bonus for prescribing it.”

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What Does This Look Like in Real Life?

If your advisor works at a big-name firm that:

•Offers “free” financial planning

•Pushes proprietary mutual funds or annuities

•Has a massive sales force but few actual planners

•Earns money from commissions or revenue-sharing deals

…you’re probably not getting truly unbiased advice.

They might smile, shake your hand, and say they’re “fiduciaries” — but ask yourself this:

How are they getting paid?

Are they required to act in your best interest at all times?

Or only when it doesn’t cut into their commissions?

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“My Old Advisor Was Great!” — Until You Look Closer

We’ve had clients come to us and say,

“I thought my old advisor was doing a good job — no annual fee, said the funds were ‘no-load,’ and I never paid out of pocket for anything.”

But once we looked under the hood?

It was a mess.

Here’s what we found:

1. “No-Load” Funds… Still Paying the Advisor

Some advisors claim they use “no-load” mutual funds — implying they don’t get paid to sell them.

But those funds often carry:

•12b-1 fees (ongoing fees buried in the expense ratio)

•Revenue-sharing agreements

•Shelf-space payments that reward the advisor’s firm for promoting certain funds

Translation: You’re paying. You just don’t see it.

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2. No “Fee” — But High-Turnover Trading That Costs You More

Other advisors pitch “free” or “low-cost” advice, then make up for it by churning the account — frequent trading that generates hidden fees.

We’ve seen:

•1% or more in transaction costs from high-turnover trading

•In-and-out ETF strategies that aren’t based on any real plan

•Clients paying more in fees through trading activity than they would with a traditional 1% AUM model

You don’t see a bill — but you still bleed money.

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3. Selling Credit Cards, Loans, and Other Products

Many bank-affiliated advisors push:

•Credit cards

•Personal loans

•“Cash management” accounts

These products often come with undisclosed incentives for the advisor — bonuses, quotas, or internal “points.” None of that serves your financial plan. But it does pad their paycheck.

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How to Read Between the Lines (and the Licenses)

Want to know what kind of advice you’re really getting?

Here’s how to investigate:

Check their licenses:

•Series 7 = Broker license (they can sell investments for a commission)

•Life & Health Insurance License = They can sell annuities and insurance products

•Series 65 or 66 only = Typically a fee-only fiduciary

Look at their website fine print:

•“Securities offered through…” = Usually a broker-dealer

•“Member FINRA/SIPC” = Another giveaway they sell products

•“Fee-based” = They earn both fees and commissions

Ask the blunt question:

“Are you a fiduciary at all times?”

If the answer isn’t a quick, confident “Yes” — walk away.

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At Compound, It’s Simple: No Commissions. No Conflicts. No Nonsense.

We’re fiduciaries — all the time.

Not just when it’s convenient.

Not just when we’re not wearing our “sales” hat.

Not just when the market’s calm.

That means:

•No commissions

•No product sales

•No backdoor incentives

Just advice that’s 100% aligned with you.

And we go a step further…

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We Don’t Just Avoid Hidden Fees — We Give Extra Revenue Back to You

Through our partnership with Altruist, we offer a fully transparent securities lending program that can generate additional income in your account.

Here’s how it works:

•Certain securities in your account can be loaned out to institutions

•You retain full ownership and can sell them at any time

•You keep the revenue — we don’t take a cut

•Most firms pocket this revenue. We pass it back to you.

You won’t find that at most firms. Frankly, we haven’t seen anyone else do it.

That’s the kind of transparency and alignment we believe in.

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The Bottom Line

Most people assume all advisors are legally required to act in your best interest.

They’re not.

That’s why knowing the difference between a full-time fiduciary and a part-time product-pusher can save you tens — or hundreds — of thousands of dollars over your lifetime.

If you’re ready for advice that’s built around you, not their commissions, let’s talk.

No pressure. No product pitch. Just the truth.

Keep Compounding,

-Heath