This is a question we answer all the time—and it’s important for you to understand the important differences between these two types of financial professionals.

WorthPointe is a fee-only firm, which means we conduct business based on having a fiduciary duty to you, which means by law, we must have your best interest at heart. It also means we have no inherent conflicts of interest, and we don’t accept fees or commissions based on product sales. We provide comprehensive advice based on a percentage of your assets under management.

Contrast that with how fee-based financial planners operate. They may charge fees and commissions based on the products they sell, but because they don’t have a duty to disclose their method of compensation, clients are subject to hidden fees that can dilute their portfolios. This way of conducting business creates an inherent moral hazard, since advisors may be tempted to suggest products that will result in them earning high commissions—but may not be right for you.

Contact us today if you want to learn more about how working with a fee-only advisor can benefit you.