Fee-only financial planners are financial advisors who operate on a fee-only basis. They work with clients to create budgets, plan retirement, pay down debt and set goals to reach other financial milestones.
These advisors typically collect fees from only you as a percentage of your assets under management. Fee-only advisors don’t receive any fees, commissions, referral fees, kickbacks or any other hidden forms of compensation.
This payment structure can reduce the chances that the advisor will encounter a conflict of interest. Fee-only financial planners don’t earn additional compensation by recommending one investment product over another. In fact, fee-only financial planners work according to their fiduciary responsibility, meaning they must act in their client’s best interests.