The manner in which your financial professional is compensated can naturally shape the decisions making process they use to select investments or other products. Behind the scenes at brokerage firms, banks, and insurance companies, salaries and commissions are typically based on a certain volume of transactions or the sales of certain products. The standard that they use is known as suitability, whereby recommendations are deemed merely appropriate for a client.
Fee-only advisors, on the other hand, abide by a fiduciary standard to use their knowledge, tools, and research capabilities to advise only what is absolutely best for the client. The National Association of Personal Financial Advisors considers this fee-only model "the most transparent and objective method available," as we are compensated only by the client and only for advice, plan implementation, and ongoing management of assets.
To be 100% clear, we don't accept commissions or referral fees from anyone.