Fee-only fiduciary
What a fee-only fiduciary is, and why it matters to you
The two terms
Fiduciary
A fiduciary is legally required to put your best interest ahead of their own. I'm a fiduciary 100% of the time in my firm. Some advisors act as fiduciaries only part of the time, or never.
Fee-only
A fee-only advisor is paid only by client fees, never by product sales or commissions. That's how I'm paid.
Fee-based (a different thing)
Fee-based advisors can be paid a mix of client fees and commissions. The names sound alike, but the incentives are very different.
Fee-only planner vs. a product salesperson
- How they're paid: client fees only, or commissions on what they sell.
- What they recommend: whatever fits your plan, or a product with a payout attached.
- What they cover: your whole financial life, or mostly investments and insurance.
- What you can see: every fee posted, or costs you have to dig for in a prospectus.
How I get paid, out loud
Nobody in this industry works for free, so ask every advisor exactly how they get paid. My answer is on the services page: monthly planning fees, an asset-based fee for investment management, or a combination.
Plenty of them aren't. Ask every advisor you talk to how they're paid and whether they act as a fiduciary all of the time.
I don't sell any products at all. If insurance or an annuity makes sense for your plan, I'll help you think it through, and you buy it from someone else.
Look them up on the SEC's Investment Adviser Public Disclosure site at adviserinfo.sec.gov. My firm's record and Form ADV are there.