What are Hard Dollars?
How Do Hard Dollars Work?
For example, if someone wishes only to learn from a broker or adviser about options for retirement planning, the broker may charge a fee for an hour of consultation. This fee is an example of hard dollars. Hard dollars are the opposite of soft dollars.
Why Do Hard Dollars Matter?
Hard dollars compensate financial professionals for their time. They serve as an incentive to provide quality service that may later result in a sale of securities.