Listen to a Business English Dialogue About Hard dollars
Elena: Hi Ronald, have you heard about “hard dollars” in business and finance?
Ronald: Yes, Elena. “Hard dollars” refer to actual cash payments made by clients to financial professionals for specific services rendered.
Elena: Right, it’s different from “soft dollars,” which are commissions or rebates received by brokers for executing trades on behalf of clients.
Ronald: “Hard dollars” are often used for services like financial planning, investment advice, or consulting, where the fees are paid directly by the client.
Elena: Yes, Ronald. Clients appreciate the transparency of “hard dollar” arrangements, as they know exactly what they’re paying for and how much.
Ronald: And financial professionals must provide clear documentation of the services rendered in exchange for “hard dollar” payments.
Elena: Absolutely, Ronald. It’s essential for clients to understand the fee structure and the value they receive for their “hard dollar” payments.
Ronald: Financial professionals also have a fiduciary duty to act in the best interests of their clients when charging “hard dollars” for their services.
Elena: Yes, Ronald. This ensures that clients receive fair and appropriate advice and assistance in managing their finances.
Ronald: “Hard dollar” arrangements can foster trust and accountability between financial professionals and their clients.
Elena: Right, Ronald. Open communication and transparency are key in maintaining a mutually beneficial relationship.
Ronald: Overall, “hard dollars” provide a straightforward and transparent way for clients to compensate financial professionals for their expertise and services.
Elena: Absolutely, Ronald. It’s a clear and direct payment method that promotes trust and accountability in the financial advisory industry.