A fee-only advisor is paid only by clients, not by commissions or payments from the companies whose products they recommend. That structure removes one important conflict of interest. It doesn’t answer every question, so it helps to know what to ask about fees, services, and responsibilities.

How is a fee-only advisor paid?

Common arrangements include a fee based on the assets an advisor manages, a flat or retainer fee, an hourly fee, or a combination. A registered investment adviser describes its fee arrangements in its disclosure brochure (Form ADV Part 2).

How is fee-only different from “fee-based”?

The terms sound alike, but they’re not the same. A “fee-based” advisor may charge fees and also receive commissions on products they sell. Asking directly how an advisor is paid, and by whom, is the clearest way to understand any potential conflicts.

What should the fee cover?

Clarify which services are included, how fees are calculated, and which expenses may be charged separately. Ask how the cost changes if your account value or the scope of your relationship changes.

Five questions worth asking any advisor

  • How are you paid, and by whom?
  • Do you act as a fiduciary for all of my accounts?
  • What exactly does your fee include?
  • Who holds my assets?
  • How often will we review my plan?

Get the details in writing.

Review the proposed advisory agreement and the firm’s disclosure brochure before you decide. Together, they describe the services, fees, and other terms of the relationship.

Frequently asked questions

Is Barrett Capital fee-only?
Yes. Barrett Capital is a fee-only registered investment adviser. Clients are our only source of compensation.
Is every financial advisor a fiduciary?
No. Standards differ by the type of professional and account. Ask any advisor to confirm in writing whether they act as a fiduciary for all of your accounts.

General educational information, not individualized investment, legal, or tax advice.