What Is a Fee-Only Financial Planner?

What is a fee-only financial planner?

A fee-only financial planner is compensated solely by their clients, not through commissions, product sales, or third-party kickbacks. Their only source of revenue is the fee the client pays, whether that fee is a flat rate, an hourly rate, or a percentage of assets managed. Because no other party pays the planner, there is no built-in incentive to recommend one product over another based on what it pays the advisor. The planner's compensation is tied to serving the client, not to moving product.

This distinguishes fee-only planners from advisors who earn all or part of their income from commissions on the products they sell. Understanding this distinction is one of the most useful things you can do before choosing who manages your money.

Fee-only vs. fee-based vs. commission-based

These three terms sound similar, but they describe different compensation structures with different implications for whose interests an advisor's income is tied to.

None of these models make an individual advisor dishonest. Many commission-based and fee-based advisors act in good faith and disclose their compensation clearly. The distinction is about incentive alignment, not character: a compensation structure that ties an advisor's income to product sales creates a potential conflict that a fee-only structure is designed to remove.

• 01Fee-only: The advisor is paid only by the client, through a flat fee, an hourly rate, or a percentage of assets under management. There are no commissions, no product sales, and no third-party compensation of any kind.
• 02Fee-based: A hybrid model. The advisor can charge fees to clients and also earn commissions from selling certain products, such as insurance or annuities. This dual structure can create potential conflicts of interest, since the advisor may have a financial incentive to recommend a commission-paying product.
• 03Commission-based: The advisor's income comes from the financial products they sell rather than directly from the client. The client may not write a check to the advisor at all, but the cost is generally built into the product, and the advisor's compensation flows from the product provider.

Why fiduciary duty matters

Fiduciary duty is a legal standard. An advisor held to a fiduciary standard is required to act in the client's best interest, disclose conflicts of interest, and put the client's needs ahead of their own.

This is different from the suitability standard, which applies to many broker-dealer representatives under FINRA rules. Under a suitability standard, a recommendation only needs to be reasonably suitable for the client, not necessarily the best available option. A product can be suitable and still pay the recommending party a commission.

Registered investment advisers (RIAs) operating under the Investment Advisers Act of 1940 are generally held to the fiduciary standard. Not all financial professionals are, and the distinction is not always obvious from a title alone. A fee-only fiduciary combines both protections: compensation that comes only from the client, and a legal obligation to act in that client's best interest. Together, these represent the highest standard of care available in the industry, though even a fiduciary relationship does not eliminate the need for you to ask questions and understand what you are paying for.

What to ask when choosing a fee-only planner

Before you hire any financial planner, it is worth asking a few direct questions:

• 01How are you compensated? Ask specifically whether the answer is fee-only, and whether that includes every source of revenue related to your account.
• 02Are you a fiduciary at all times, for all services you provide? Some advisors are fiduciaries only in certain contexts.
• 03What credentials do you hold? Look for designations such as CFP® (Certified Financial Planner) or CIMA® (Certified Investment Management Analyst), which require ongoing education and adherence to ethical standards.
• 04Do you have account minimums? Minimums can determine whether a planner is accessible to you, especially earlier in your career.
• 05What services are included in your fee? Ask whether the fee covers investment management alone or also includes financial planning, tax planning, and ongoing advice.

How Hunt Wealth Planning works as a fee-only fiduciary

Hunt Wealth Planning is a fee-only fiduciary firm, which means we do not earn commissions or sell products of any kind. Our only compensation comes from the fees our clients pay us directly, so our recommendations are not shaped by what a product provider is willing to pay us.

We also have no account minimums to start. We built the firm for professionals who are still accumulating wealth, including young professionals, high earners, and equity compensation recipients, not only for retirees or the already wealthy. Before founding Hunt Wealth Planning, Austin Hunt spent years advising other financial advisors nationwide on asset allocation and tax strategy, experience that now works directly for clients. Austin holds the CFP® (Certified Financial Planner) and CIMA® (Certified Investment Management Analyst) designations.

Our approach is modern and tech-forward: clients get a client portal, real-time data, and a paperless onboarding process designed to make working with us straightforward. We work with clients in Tampa, FL and the surrounding area, and offer financial planning in Tampa alongside virtual service for clients elsewhere. This is simply how we operate, not a claim that it is the only way to do good planning.

Frequently asked questions

### Is fee-only the same as fee-based?

No. Fee-only means an advisor earns no commissions at all, only fees paid directly by the client. Fee-based allows an advisor to earn commissions in addition to client fees, which can create a compensation structure with more potential conflicts of interest.

### Are all fiduciary advisors fee-only?

Not necessarily. Some advisors held to a fiduciary standard in certain contexts may still earn commissions in others. A fee-only fiduciary, who is both a fiduciary at all times and compensated solely by the client, represents the strictest alignment between an advisor's incentives and the client's interests.

### How much does a fee-only financial planner cost?

Costs vary by firm and by structure. Common approaches include a flat annual or project fee, an hourly rate, or a percentage of assets under management. There is no single standard cost across the industry, so it is worth asking any planner directly how their fee is calculated and what it includes.

### Do I need a certain amount of money to work with a fee-only planner?

It depends on the firm. Some fee-only planners require a minimum amount of investable assets, while others do not. Hunt Wealth Planning has no account minimums to start, which is designed to make working with a fee-only fiduciary accessible to people who are still building their wealth.

Talk to a fee-only fiduciary

If you are looking for a fee-only fiduciary financial planner in Tampa, we would welcome a conversation. There is no obligation, and no pressure to move forward afterward.

Schedule your free intro call to talk through how you are currently working with an advisor, or how you might start, and see whether our approach is the right fit for you.