Fee-Only Financial Advisors
Unlike traditional brokers and financial advisors, Fee-Only financial advisors do not sell any products nor receive any commissions for recommending the purchase of products. Instead, financial advice and recommendations are provided to clients for a mutually agreed-upon fee. A Fee-Only financial advisor remains absolutely independent, thereby maintaining objectivity and avoiding any conflict of interest.
As a Fee-Only financial advisor, I belong to NAPFA, the National Association of Personal Financial Advisors (www.feeonly.org). NAPFA is the organization of Fee-Only advisors. Their requirements for membership are by far the strictest in the industry.
Members are prohibited from receiving any type of compensation based on the client's purchase of a financial product. Members also cannot receive a fee or other compensation from another party based on the referral of a client. The advisor can be compensated solely by the client and not by any third party. In addition, NAPFA's eligibility standards for membership require members to be either licensed Certified Financial Planners or to have the education, knowledge, and experience to practice comprehensive financial planning.