Whats the difference between a fee-only, fee-based, and commission-based financial planner?
A fee-only planner receives all his income from fees paid by clients for their advice and management. There are several types of fee-only planners–some charge by the hour, some on a retainer basis, and some charge based on the value of the assets under management. Fee-based planners charge fees for their advice and management, but they may also earn commissions on the products they sell clients. One example of this is when fee-based planners also sell insurance products. Commission-based planners earn their income based on the commissions paid by the companies that provide the products or services they sell. At a “full-service broker” a portion of the commissions on trades or products goes to the broker. And, since some products and services carry higher fees than others, that could lead to a conflict of interest. As a retainer-based, fee-only planner, Wesling Financial Planning Services Corp. avoids those potential conflicts of interest and will give you the financial advice appropri
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