Hey Tottis, how are you?

I'm good.

I'm on the line with Cullen Roach, who is the founder of Orcombe Asset Management and is the author

of the pragmatic capitalism blog.

I ask Cullen on today to talk about a recent post of his entitled how the fee

structure of financial advisory will change in the future. There's a steady drumbeat

of news and commentary about the state of the financial advisory

business and I thought it would be good to speak to Cullen about it.

Specifically how going forward advisors are going to charge for their services.

Cullen's post did a good job of summing up the situation at hand.

So I think that's a good place to start, Cullen.

This piece puts in stark contrast the situation facing advisors today. Have you gotten any pushback from

advisors? You know surprisingly not too much. I mean I've kind of seen the various

iterations of how the fee structure has changed mainly because I think I've kind of been involved directly in the industry in a way throughout my career that I've seen that sort of transition from when I first got into the business with

Merrill Lynch.

It was mostly a commission-based business and the team that I worked with at that time, we were kind

of just starting to transition into more of a fee-based, more of a fixed-fee type of process and it was interesting to see that change.

I, one of the reasons I kind of was disillusioned with the big brokerage

firms was because of the high fees that they charge and the way that it was being structured

in a way that I thought was just excessively high and so you know I transition to an

RIA where I'm able to then use all of these low-cost funds and charge basically

an advisory fee somewhat similar to what we were doing at

...