What is a “Fee-Only” Financial Advisor and Why is it Important?
- January 13, 2020
- Posted by: Parker Evans
- Categories: Brokers, Financial Planning, life insurance
According to the CFP Board, a “fee-only” financial advisor must not receive sales-related commissions.
A life insurance agent, who accepts commissions, from an insurance agency or insurance company, for example, is not a “fee-only” only advisor. Likewise, a Series 7 Registered Representative paid a sales commission by a Broker-Dealer for selling investments.
Here’s why we believe the “Fee-Only” method of compensation to be the most transparent and objective model of advisor compensation.