When it Comes to Financial Advice, What Fee-Only Really Means (and Why It Matters)
I’ve been dying to clear this up because it’s the number one question I get in my inbox… several times a day, every single day.
“What exactly does fee-only mean?” I know how confusing the jargon around financial advice can be. Believe me it’s not you, it’s the financial services industry. You see terms like fee-based, commission-free, independent, wealth manager. And honestly, it’s no wonder people get overwhelmed or tune out.
But “fee-only” is different. This term actually matters. Because it’s not just another label, it’s a signal that means this advisor must act in the capacity of a fiduciary. And fee-only advisors are legally required to do that, 100% of the time.
Fee-only means they work only and directly for you instead of getting paid to sell investments for somebody else. Not a brokerage firm. Not an insurance company. Just you.
You’ll want to know when an advisor earns money only from their clients, and not from product commissions or sales incentives. Their loyalty isn’t split. They have one job: to give you advice that’s in your best interest. Period.
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How Do You Pay a Fee-Only Advisor?
Let me start here: fee-only doesn’t mean free, it doesn’t mean bargain basement, and it definitely doesn’t mean the clock starts ticking the moment you say hello. Fee-only advisors might not be the cheapest option, but when the pricing is tied to the scope of work, the value is clear. You’re paying for time, expertise, and planning that’s built around your needs. And you’re not paying for sales pitches or hidden commissions.
What you pay a fee-only advisor should reflect the time and complexity of the work involved. Like other professions, not all hours are equal. You’re paying for experience and judgment, not just time on a clock. Especially when you’re working with someone who specializes in things like taxes, retirement income, real estate, estate planning, private investments, or equity comp.
Many fee-only Registered Investment Advisors apply the traditional assets under management (AUM) model, typically just under 1%, and lower as your portfolio grows. But many (and especially those in my Wealthramp network) offer what I like to call “scope of work” pricing. That means your fee depends on what you need help with, not just your assets and how much you have invested.
In practice, this can include:
Flat fees for a specific project
Hourly rates for limited guidance
Ongoing retainers or subscriptions for continued access to advice across your full financial life
I’m actively pushing for more fee-only advisors to move beyond the AUM-only approach. Because for me, flexibility is the key. It gives you more choice in how you engage, and more transparency in how you’re charged.
Why This Matters
By the time someone finds their way to a true fee-only fiduciary, they’ve usually been through the opposite. And by that I mean advice that felt vague, overly salesy, or just not aligned with their life.
What happens next is pretty powerful. They tell me they feel seen. Heard. Clear on what they’re paying and why.
Working with the right advisor is 100% about having someone you trust, who shows up with clarity and purpose, and uses their expertise to help you move forward with real confidence.
And that, in my experience, is worth every penny.
Still confused? Watch my short video.