By Colleen Weber, CFP®, CPA

If you’ve been researching who to trust with your money, you’ve probably seen the term “fee-only” pop up. It may sound a little technical, but it simply means working with a registered investment advisor who’s paid by you, not by commissions. When you see “fee-only,” you’re looking at advice designed with you in mind, which is why working with a fee-only financial advisor can be such a smart move.

But what does that term actually mean? And more importantly, why is it so crucial for your financial future?

Today, I want to talk to you about what it means for me to be a fee-only financial advisor, and why this principle is something I proudly stand behind at Colleen Weber CPA, CFP^®.

What Does Fee-Only Mean? 

Fee-only financial advisors are paid directly by their clients. They don’t receive any types of kickbacks or commissions for recommending certain securities or investments. 

The National Association of Personal Financial Advisors (NAPFA) believes fee-only financial advisors are the most transparent and unbiased advisors you can come by. 

Fee-only advisors are typically either registered investment advisors or CERTIFIED FINANCIAL PLANNER® professionals. This is because both types of professionals require a fiduciary duty, which means they are obligated to put their clients’ best interests first.

How Are Fee-Only Advisors Paid?

There are a few different ways fee-only advisors get paid. Some popular methods include:

• Hourly. You pay a fixed amount based on the number of hours your advisor spends meeting with you. 
• Flat fee. This is similar to the hourly method, but you pay one flat fee no matter how many hours you spend meeting with your advisor. 
• Percentage of assets under management (AUM). You pay a percentage-based fee depending on the value of your investments. This fee is typically around 1%.

What Are the Benefits of a Fee-Only Advisor?

If you’re in the market for a financial advisor, here are three reasons why you should choose a fee-only advisor: 

1. No Commissions

No matter how pure an advisor’s intentions are, it can be hard to provide unbiased recommendations when they know they’ll get a kickback or commission. But this isn’t the case for fee-only advisors. They have no incentive to push certain products because they don’t sell any products at all. They’re solely compensated by you.   

2. They’re Fiduciaries

Fee-only advisors are fiduciaries, which means they’re legally and ethically required to act in your best interest at all times. They’re loyal, quick to disclose any conflicts of interest, and only give advice based on your unique situation and goals.  

3. You Get Objective Advice 

It’s easy to act on emotion when you’re dealing with your own money. There’s talk of a stock market crash, so you want to change your investing strategy. A family member needs to borrow money, even though you know giving it to them would jeopardize your financial security. You want to live a comfortable life in retirement, but you’re not sure if you’re on track. 

In situations like these, it’s nice to have someone you can go to for objective advice.

Partner With Colleen Weber CPA, CFP® As Your Fee-Only Financial Advisor

I want you to know that you are always my focus—and my only focus. When we work together, you’ll see my commitment to transparency and giving you objective advice. As a CPA, CFP®, and a fee-only financial advisor, I’m dedicated to providing you with my undivided loyalty and helping you pursue the financial objectives that matter most to you.

Maybe you have a nagging question about a specific financial concern, or perhaps you’re ready to create a full, comprehensive financial plan. Whatever your need, I’m here to guide you every step of the way as your trusted fee-only financial advisor. 

To get started and see how I can help, book a free introductory meeting online or call (952) 470-0750.

About Colleen

Colleen Weber is a fee-only financial advisor, CERTIFIED FINANCIAL PLANNER® professional, and CPA based in Chanhassen, Minnesota. With more than 20 years of financial planning experience, Colleen provides comprehensive financial planning and wealth management. She specializes in serving clients nearing retirement, retirees, busy professionals, and women. She is passionate about developing financial plans that save clients on taxes and investment strategies that help them pursue their goals. Learn more about Colleen by connecting with her on LinkedIn or booking a complimentary phone call meeting.