Fee-Only refers to a specific method of compensation in which financial planners are compensated exclusively from the fees paid by their clients. They specifically choose not to accept commissions, kick-backs, finder’s fees or compensation from any other source. This is significant and important because earning one’s living by selling products or services for which a commission is paid, leaves the financial planner with an inherent conflict of interest. When paid exclusively by the client, the financial planner’s advice can be solely guided by the best interests of the client and the client’s needs and goals.

The fee is often less than the sales load you would pay on just one mutual fund purchased through a commissioned broker. Being compensated by a predetermined client fee rather than commissions assures that the advice clients receive is unbiased and always in their best interest.