Article originally appeared on Business Insider by Katie Oelker.
- Fee-only advisors give financial planning advice to individuals and couples for a set fee based on the services they provide you.
- Fee-only advisors do not receive commissions from the sales of products.
- Fee-only and fee-based advisors have several differences to consider when deciding which type of advisor to work with.
Seeking a professional to help you manage your money is a great step to achieving your financial goals. But not all financial advisors are the same; some may offer varying services — and more importantly, they may have different fee structures.
A fee-only financial advisor will be one you’ll come across during your search. Here’s what to know.
What is a fee-only financial advisor?
A fee-only financial advisor is an advisor that’s paid on a set rate based on the services they provide a client, rather than being paid based on commission. These types of advisors act as a fiduciary , meaning that they’re required to make recommendations that are in a client’s best interest. While that seems like common sense, a lot of other advisors only act on a suitability basis, meaning that they only have to provide recommendations that are suitable for a client’s situation.
Read the full article on Business Insider.