How is my Financial Advisor Compensated? – Fee-Only vs. Fee-Based

Over the years, I have encountered a great deal of confusion among the public surrounding Fee-Based vs. Fee-Only advisor compensation.

Fee-Only is pretty straightforward. The client pays the advisor for his/her advice. The fees can take one or more of several forms:

• A flat fee for the services rendered.

• A percentage of the client’s investment assets or in some cases another metric such as net worth.

• Hourly

Additionally the fee can be for one-time or ongoing services. In no case will a Fee-Only advisor receive any compensation from sales commissions, trailing commissions, or any other form of compensation derived from financial product providers.

via How is my Financial Advisor Compensated? – Fee-Only vs. Fee-Based.