Frequently Asked Questions

Why is fee-only compensation of critical importance?

A financial planner who has a financial stake (for example, a sales commission) in the course of action that he/she recommends to a client faces an inherent conflict of interest and cannot be considered objective and unbiased. This is true even if the planner truly believes that he/she has only the best interests of the client at heart. Unfortunately, the vast majority of financial advisors in the United States are sellers of financial products and collect sales commissions. Some or all of their income may be dependent on their ability to steer their clients to a limited number of the thousands of financial products available today. These advisors include stock-brokers, analysts, insurance agents, accountants and attorneys, as well as financial planners. Many clients are not aware of their advisors’ dependence on selling products and/or do not recognize the inherent conflict of interest in such arrangements.


Investing involves risk including the possible loss of principal. No guarantees of investment success can be offered or that a client's goals and objectives will be achieved. Investments will fluctuate and there will be periods where the investments may be worth less than the initial purchase value.