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What is a fee-only financial advisor?

A fee-only financial advisor is paid only by client fees. The advisor does not receive commissions from product sales, insurance sales, or referrals. That compensation structure can make it easier to see who pays the advisor, but it does not by itself determine the quality of advice or investment results.

Fee-only, in plain English

Fee-only means the client is the advisor's only source of compensation. Fees may be charged as a percentage of assets managed, a flat or monthly planning fee, an hourly fee, or another arrangement described in the advisory agreement. The important point is the source of payment: the advisor is not paid a commission for recommending or selling a financial product.

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Fee-only, fee-based, and commission compensation

Fee-only advisors receive compensation from client fees only. Fee-based advisors may charge client fees and may also receive commissions or other compensation connected to products or services. Commission-based professionals are generally paid when a product or transaction generates a commission. These labels describe compensation, not a universal measure of an advisor's skill, fiduciary obligations, services, or the outcomes a client may experience.

Questions to ask about compensation and conflicts

Use this checklist when comparing firms. Clear answers and written disclosures give you information to compare firms on your own terms.

How are you and your firm paid?
Do you receive commissions, referral compensation, revenue sharing, or other third-party payments?
Can anyone at the firm sell products?
Which services are included, what may cost extra, and how often can the fee change?
Can I review the advisory agreement, Form ADV, fee schedule, and conflict disclosures?

Where planning fees may vary

Planning fees vary by firm and engagement. A firm may use an assets-under-management fee, a subscription or retainer, a flat project fee, an hourly fee, or a combination. Scope can vary too: one relationship may include planning and investment management, while another may focus on a specific decision. The right question is not only what the fee is, but what services, disclosures, and responsibilities come with it.

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How this works at Hunt Wealth

Hunt Wealth Planning is fee-only and does not receive commissions or sell products. Our pricing page describes our current fee structure: investment management is 1% of assets under management annually, charged monthly, and financial planning is $200 per month, waived once accounts with us total over $500k. Fees and services should be reviewed together, so you can decide whether the relationship fits your circumstances.

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