What is fee-only financial planning?

Fee-only financial planning is a compensation model where financial planners are paid solely by their clients and not from third-party commissions or incentives, ensuring transparency and unbiased advice. How does fee-only financial planning differ from fee-based planning?

How do fee-only financial planners charge their clients?

Fee-only financial planners charge their clients in a few different ways. The most common method involves charging a percentage of the client’s assets under management, which are the funds that the planner or financial advisor is responsible for handling. Another method is to charge an hourly or monthly rate.

What is the difference between fee-only and fee-based financial planning?

While both models involve fees from clients, fee-based planning also permits planners to earn commissions from product sales, potentially leading to conflicts of interest. Fee-only financial planning strictly prohibits earning from commissions, ensuring unbiased advice. Are fee-only financial planning services more expensive than other models?