Fee-Only Financial Planning: Why Transparent Pay Protects Your Wealth
Choosing an advisor isn’t just picking someone to “manage money.” It’s choosing a long-term partner whose guidance shapes your security, taxes, and future options. Fee-only financial planners are built for that trust: their pay is simple, their incentives are aligned, and their duty is to you. What does “fee-only” really mean—and why does it matter so much?
What “Fee-Only” Really Means
Fee-only planners are paid only by their clients. No commissions. No kickbacks. No product sales incentives in the background. That clean compensation structure removes hidden pressures and keeps the advice focused on your goals.
“Fee-only planning is about clarity and alignment—so recommendations reflect your interests, not a product shelf.” — Fabian Degen (Founder)
How Fee-Only Advisors Charge
Straightforward, fully disclosed pricing models are the norm. Common options include:
Hourly: Pay for time spent answering questions, modeling scenarios, or reviewing a plan.
Flat/Project Fees: A fixed price for clearly defined work (e.g., a full plan or a targeted analysis).
Assets Under Management (AUM): A percentage of the investments the advisor manages—tying the advisor’s success to yours.
Why Work With a Fee-Only Planner?
1) Transparent Advice You Can Trust
When compensation comes only from you, recommendations can be built solely around your situation, priorities, and risk comfort—without sales quotas or product payouts.
2) Fiduciary Duty—Always Your Best Interest
Fee-only planners operate under a fiduciary obligation: they must put your interests first. That legal and ethical standard fosters confidence, accountability, and a planning process you can rely on.
3) Holistic, Integrated Planning
Most fee-only firms deliver comprehensive guidance across investments, retirement income, tax strategy, estate considerations, insurance/risk management, and cash-flow planning—so each decision supports the others.
“Our commitment is simple: objective, client-first advice—no hidden agendas.” — Fabian Degen (Founder)
Fee-Only vs. Fee-Based (Important Difference)
The terms sound similar but work very differently:
Fee-Only: Paid only by clients. No commissions from product sales. Minimizes conflicts.
Fee-Based: May charge fees and receive commissions on certain products. That dual model can introduce incentives that compete with fully objective advice.
If you want maximum transparency and the least conflicted model, fee-only is often the clearest path.
What to Check Before You Hire
Confirm Fiduciary Commitment
Ask for a written acknowledgment of fiduciary duty. You deserve advice delivered to a legal standard that puts you first—always.
Understand Exactly How You’ll Pay
Request a simple breakdown of fees (hourly, flat, or AUM) and what’s included. Alignment starts with clarity.
Review Credentials and Experience
Look for rigorous training and recognized designations (e.g., CFP®) that signal technical competence, ethics, and ongoing education. Ask how the firm’s background matches your needs.
Frequently Asked Questions
What is a fee-only planner, in one sentence?
An advisor compensated solely by client fees—no commissions or product-sale incentives.
Why choose fee-only instead of fee-based?
To reduce conflicts of interest and keep recommendations objective and transparent.
Are fee-only advisors more expensive?
They can appear higher upfront, but the value of conflict-free, tax-aware, long-range advice often outweighs the cost and can improve long-term outcomes.
How do I confirm an advisor is truly fee-only?
Ask them to disclose all compensation sources in writing and to affirm they receive no commissions, revenue sharing, or referral payments.
Is Fee-Only Right for You?
If you value unbiased guidance, straightforward pricing, and a fiduciary standard that puts your interests first, a fee-only relationship is a strong fit. It’s a model designed to simplify decisions, reduce noise, and keep your plan moving toward what matters most to you.
Schedule Your Free Assessment
Ready to see how a fee-only approach could work for your situation? Schedule a Free Assessment and get a clear, actionable path forward.
Disclosures: FMD Wealth Advisors LLC (“FMD Wealth Advisors”) is a Registered Investment Adviser.
This material is for general information only and is not individualized legal or tax advice. Consult your attorney and CPA regarding legal and tax matters specific to your circumstances. This content is intended to provide general information about FMD Wealth Advisors. It is not intended to offer or deliver investment advice in any way. Information regarding investment services is provided solely to gain an understanding of our investment philosophy, our strategies and to be able to contact us for further information.
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