Comparison Chart

Motivation Matters: the difference between Fee-Only, Fee-Based, and Commissioned Financial Advice

Item	Fee Only	Fee Based	Commission
Paid strictly for giving financial adviceIf you take NO action whatsoever other than getting verbal or written advice only some types of "advisors" are compensated. Others rely on you taking action to get paid.	Yes	No	No
Requires passing licensing and continuing education?In some form or another, all of these financial professionals are licensed in some way.	Yes	Yes	Yes
Sell Insurance?A Fee-Only advisor could never sell insurance. Fee-Based advisors could advise your investments with an annual percentage, but also make commission on selling you insurance.	No	Yes	Yes
Upfront, easy to find feesHidden fees are everywhere. Fee-Only advisors should disclose their ENTIRE fee upfront.	Yes	No	No
Only allegiance is to their clientSince Fee-Only advisors have no extra advantage to "sell" you a product, you can rest assured their recommendation is in your best interest, not their wallets.	Yes	No	No