What Does Working with a Fee-Only Advisor Mean for You?

An Advisor who is compensated by only YOU, the client:

Working with a Fee-Only advisor means that the advisor is only compensated by the fee that they charge, not by any commissions. The fee could be charged hourly, or it could be calculated as a percentage of a client’s assets under management (AUM), or even a retainer model. The National Association of Personal Financial Advisors (NAPFA) is the country’s leading professional association of Fee-Only financial advisors and they define a Fee-Only financial advisor as “one who is compensated solely by the client with neither the advisor nor any related party receiving compensation that is contingent on the purchase or sale of a financial product.” 

Working with a Fee-Only advisor means that the advice you receive is not motivated by the need to sell any products or influence from outside interests. The advice is objective and tailored to meet your specific needs.

An Advisor who works in YOUR Best Interest:

Advisors who are compensated solely by the client are Registered Investment Advisors (RIAs), fiduciaries, who are obligated to put your interests ahead of their own. NAPFA Advisors are highly trained professionals who are committed to working in the best interests of those they serve.  Members of NAPFA must abide by a Fiduciary Oath and Code of Ethics for each and every client that they serve. An advisor who follows the NAPFA Fiduciary Oath must:

Always act in good faith and with candor;

Be proactive in disclosing any conflicts of interest that may impact a client;

Not accept any referral fees or compensation contingent upon the purchase or sale of a financial product.

According to NAPFA, the Fee-Only method of compensation is the most transparent and objective method available.  Read more about Fee-Only Financial Planning here.

Logo: fee only

Baron Financial Group (BFG) is an independent Fee-Only financial planning and investment management firm. We are long-time members of NAPFA and a true Fee-Only firm that is compensated solely by the clients, not by the purchase or sale of a financial product. Our fiduciary responsibility is to put the best interests of our clients first.

To learn more about what it means to work with a Fee-Only Financial Advisor, contact the Baron Financial Group Team.