The Hidden Costs of Traditional Financial Advice (And Why Frank Doesn't Play That Game)

Financial advice shouldn’t be a mystery. But in the traditional world—whether it’s an old-school advisor, a flashy robo-platform, or a “free” insurance planner—there’s often a catch. Hidden fees. Stealth commissions. Layered costs that quietly eat away at your future.

Frank does things differently. No commissions. No sales agenda. No murky pricing. Just clear, flat-fee, conflict-free advice powered by AI and backed by real fiduciary standards.

Let’s take a look at what you might be paying today without even realizing it.

A Closer Look at the Hidden Fee Structure

Whole Life Insurance Commissions

• What You’re Told: It’s an investment and insurance in one.
  
  
• What’s Hidden: 60–100% of your first year’s premium may go straight into the advisor’s pocket.
  
  
• Frank’s Take: Most families would be better served with a simple term policy and investing the rest. Frank only recommends insurance when it serves your financial goals not someone else’s commission check.

 Assets Under Management (AUM) Fees

• What You’re Told: You’ll pay 1% annually for expert portfolio management.
  
  
• What’s Hidden: Over 30 years, that 1% can eat up 20–30% of your portfolio growth.
  
  
• Frank’s Take: The cost of advice shouldn’t scale with your net worth. Frank charges a flat rate, so your growth doesn’t come with growing fees.

Managed Fees on Target Date Funds

• What You’re Told: A professional is “managing” your retirement account.
  
  
• What’s Hidden: You’re often double-paying—once to the fund manager, and again to the advisor—without any added value.
  
  
• Frank’s Take: If you’re already in a Target Date Fund, you’re paying for management. Frank won’t charge you again for doing nothing.

Conflicts of Interest: Kickbacks and Commissions

12b-1 Fees

• What You’re Told: Nothing, because most people don’t even know these exist.
  
  
• What’s Hidden: These hidden fund fees (0.25–1%) go to the broker, not to managing your money.
  
  
• Frank’s Take: Frank never recommends funds with hidden kickbacks. Transparency matters, and your returns shouldn’t fund someone else’s sales incentives.

Front-Loaded Mutual Funds

• What You’re Told: It’s a long-term investment opportunity.
  
  
• What’s Hidden: A big chunk (often ~5.75%) is taken out before your money is even invested.
  
  
• Frank’s Take: $10,000 becomes $9,425 on day one—just so someone else can get paid.

How Hourly or "Free" Advice Still Costs You More

Free Plans That Lead to Expensive Products

• What You’re Told: You’re getting a free financial plan.
  
  
• What’s Hidden: That “plan” ends in a sales pitch for annuities, insurance, or managed accounts.
  
  
• Frank’s Take: Frank gives advice based on your goals, not on what earns him a commission.
  

Hourly Advice at Premium Rates

• What You’re Told: You’re paying $250–$500/hour for expert financial guidance.
  
  
• What’s Hidden: There’s often no accountability, no follow-up, and no real implementation support.
  
  
• Frank’s Take: You deserve ongoing help, not just expensive one-off conversations. Frank is always on...ready with answers when you need them.
  

Bottom Line: The traditional advice model was built to maximize advisor income, not your long-term success. You deserve better—transparent pricing, smart guidance, and tools that actually help. That’s why Frank was built: to give you high-quality financial advice, without the hidden agenda.

Frequently Asked Questions

What is a fiduciary, and why does Frank follow that standard?

A fiduciary is legally required to put your best financial interests first, above their own profits or commissions. Frank is a fiduciary because we believe advice with no conflict of interest is the only kind worth giving.

Why does Frank charge a flat fee instead of a percentage?

The traditional Assets Under Management (AUM) fee (typically 1%) is the biggest hidden cost. The more your portfolio grows, the bigger payout for the advisor or firm. Frank charges a flat, transparent fee so that as your wealth grows, your fee stays constant. Your growth belongs to you.

Does Frank recommend products (like insurance or annuities?)

Frank provides objective advice based on your overall plan and goals. He'll tell you if you need insurance, but will never earn a commission from selling you a product like Whole Life or an annuity. Frank only recommends simple, cost-effective solutions when they serve your goals.

Frank is an AI-powered service provided by SmartPath Advisors, LLC, an investment adviser registered with the U.S. SEC. Registration does not imply a certain level of skill or training. This content is shown for educational purposes only.