Fee-Only Planners are paid only for the advice they give. They do not earn commissions by selling financial products such as life insurance or mutual funds.
Fee-Based Planners earn fees from advice and they make commissions on some of the products they sell.
Commission-Based Planners make money from the products they sell.
There are a couple of key advantages to going the fee-only route. First, you don't have to worry that your planner is making a recommendation to generate fees. Second, you get a better idea of how much you'll be paying for advice. That's not to say, however, that there aren't differences in how fee-only planners bill clients.
Some fee-only planners charge a percentage of a client's assets. Oftentimes, there's an offsetting savings because the advisor recommends no-load or low-load investment vehicles. The annual price is in direct proportion to the size of your portfolio. www.clearcreekfinancial.com
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