1 If 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.
2 In some form or another, all of these financial professionals are licensed in some way.
3 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.
4 Hidden fees are everywhere. Fee-Only advisors should disclose their ENTIRE fee upfront.
5 Since 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.