Ask An Expert

Ask an Expert – What does it mean to be a “fee-based planner?”

Jason Conger Financial Advisor

Answered By
Dawn Santoriello

Financial Planner

dawn@dsfinancialstrategies.com

 

Question

What does it mean to be a “fee-based planner?

Answer

A “Fee-Based Planner” is someone who offers financial advice and financial plans for a fee but also sells products such as life insurance for a commission. They receive commission/and or fees.
A “Fee-Only Planner” does not receive commissions. They receive a fee for financial advice and financial plans.

Even if the planner herself isn’t licensed to sell insurance but others in her firm are, she is fee-based and cannot call herself fee-only.
In my personal opinion, as long as the planner puts your needs ahead of her own your are ok with either one. CERTIFIED FINANCIAL PLANNER™ must adhere to a strict code of ethics.

A “fee-only planner” does not receive commissions. They receive a fee for financial advice and financial plans.

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