Why Fee Only?
A fiduciary must do what is in your best interest and therefore must be objective. I believe objectivity largely depends on how we are compensated. Some advisors are paid by commissions, fees or a combination of both.
When an advisor works for you on a fee-only basis, a fiduciary relationship exists (see fiduciary tab). A fee-only advisor is driven to provide the best advice possible whereas a commissioned advisor is paid based on the products they sell. A fee-only advisor, being compensated by a fee, is not therefore tempted to sell high-commissioned products which could be detrimental to the investor.
A fee-only advisor gets paid by the hour, the project, or as a percentage of assets they manage for clients. Through experience I have found that investors prefer being charged a percentage of assets I manage for them. This way fees are deducted directly from their account. No checks have to be written. Also, this means we have the same interest in wanting to see the account grow. We are partners for your beneficial interest.