Advisor basics
fee-only advisor
A fee-only advisor is paid only by the client, not by commissions on products sold. Fee-only describes how an advisor is paid. It does not describe the quality of advice.
A fee-only advisor says all of their pay comes from clients, with no commissions from selling products. That is a statement about pay. It is separate from the fiduciary duty, which is a statement about legal duty.
Advisors get paid in several ways. Investor.gov lists some of them, including an hourly fee, a flat fee for a plan, and a commission on the securities bought or sold. Ask every advisor which of these they use, and ask them to put the answer in writing.
For example: one advisor charges a flat fee for a plan and nothing else. Another earns a commission when you buy an insurance product. The first is closer to fee-only. The second has a built-in reason to recommend the product, so you should ask more questions.
Why it matters to your family: pay shapes incentives. When you review giving, tax and estate choices, you want to know what each recommendation earns the advisor. The terms "fee-only" and "fee-based" sound alike but mean different things, and "fee-based" can include commissions.
Our comparison page sets the three terms side by side. Seek First's own fee answer is on the FAQ page.
Related terms
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