Fee-only and fee-based financial planners are two of the most common fee arrangements in the financial advising industry. Fee-only advisors earn money only from the fees paid to them by clients, while fee-based advisors may also earn fees from the sale of financial products.
What should you know about fee-only and fee-based financial planners?
Here’s what you should know about fee-only and fee-based financial planners. What is a fee-only financial planner? A fee-only financial planner is someone who earns a fee for their services from their clients and does not receive commissions on the sale of financial products as additional compensation.
How does a fee-based financial planner make money?
A fee-based financial planner gets paid by the client but also via other sources, such as commissions from financial products that clients purchase. This can set up a conflict of interest, as the advisor charges you for advice while steering you toward investment products from which the advisor profits.
