What does ‘Fee-Only’ mean?
This term refers to the method of compensation for the financial planner. ‘Fee-Only’ planners are compensated solely by fees paid by their clients and do not accept commissions or compensation from any other source. ‘Fee-Only’ planners believe there is a significant conflict of interest if an advisor stands to gain financially from the purchase of any product he or she recommends to the client.
What other forms of compensation are used by financial planners?
Some planners are compensated entirely by commissions from the providers of products recommended and sold. Others referred to as Fee-based or Fee-offset, charge both a fee and receive commissions from selling products. These compensation methods have embedded conflict of interest.
As a result, Coastal Financial Advisors provides comprehensive financial and investment planning for a fee and receives no commission from the purchase or sale of products.