When you’re looking for a financial advisor, the terminology can get confusing fast. Two of the most common terms you’ll hear are Fee-Only and Fee-Based. They sound similar, but the difference could influence the total cost of your financial plan and possibly the advice you receive.
Fee-Only Financial Planning
A Fee-Only financial planning firms operate under a model where the sole source of compensation is a fee paid by the client, typically calculated as a percentage of the assets under management. It can also be a flat or hourly rate tied to the advice provided.
- Fee-Only Advisors do not receive commissions on the sales of products like insurance or specific mutual funds.
- Fee-Only Advisors don’t receive “referral fees” from third-party companies.
- The advisor’s fee is tied directly to a client’s portfolio’s performance: When the portfolio grows, the fee grows.
Marietta Wealth’s fiduciary status means we are legally bound to put your interests first, but we go a step further. By choosing a Fee-Only model, we ensure our goals are aligned with yours. Free from outside commissions or product incentives. Our recommendations are based on your best interests. Our fiduciary duty to you is a true partnership.
Fee-Based Financial Planning
While “Fee-Based” sounds similar to Fee-Only, it represents a different structural model. A Fee-Based financial advisor typically charges a fee for their advice, but they are also licensed or registered to earn commissions on certain financial products.
In this model, the advisor is essentially balancing the roles of both a financial consultant and a product provider. While many professionals navigate this conflict with care, it does introduce other interests into the relationship. The Fee-Only path can provide a more straightforward way to ensure your interests remain the primary focus.
Why it Matters
When your financial advisor is Fee-Only you get:
- Objectivity: With third-party commissions removed, recommendations are based on your personal goals and what’s best for your future.
- Transparency: Trust is built on transparency. Our fees are disclosed up front. You will know exactly what you’re paying and what we will provide in return.
- A Partnership: Fee-Only simplifies the conversation. Instead of wondering about our motivation, you can focus on the financial strategy, knowing our primary focus is simply what works best for you.
This structure ensures that as your financial partner, our success is tied to yours. When your portfolio grows and your financial health improves, we succeed together.
At Marietta Wealth, we chose Fee-Only because we believe everyone should sit on the same side of the table, looking toward the same horizon. We aren’t just managing assets; we’re working alongside you to help secure the life you’ve worked hard to build.
Want a transparent look at your financial plan? Let’s start a conversation.
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Marietta Wealth is a registered investment adviser. Registration of an investment adviser does not imply any level of skill or training. For additional information about Marietta Wealth’s financial planning and advisory services, please see the Marietta Wealth Disclosure Brochure or ADV Part 2A for full details.