Glossary
Fee-Only Advisor
A financial advisor who is compensated solely by client fees and does not earn commissions from product sales.
A fee-only financial advisor charges clients directly — typically as a percentage of AUM, a flat fee, or an hourly rate — and accepts no commissions, referral fees, or compensation from third parties. This compensation model aligns the advisor's incentives with the client's outcomes, since income depends on client retention and portfolio growth rather than product sales. Fee-only advisors are often registered investment advisors (RIAs) who are held to the fiduciary standard, meaning they are legally required to act in the client's best interest. For income-focused practices, fee-only advisors benefit most from tools that demonstrate dividend reliability and portfolio sustainability, since their value proposition is built on long-term client outcomes rather than product placement.