By Trent Derrick, CMT®
If you’ve ever shopped around for a financial advisor, you’ve probably seen the term “fee-only financial advisor” thrown around. Sounds fancy, right? But really, it’s one of the best things you can hear when choosing someone to guide your money.
So, what does it actually mean? And why should it matter to you?
Let’s break down what it really means to be a fee-only financial advisor, and why at Bellerophon Wealth Management, that one phrase says everything about how we work for you.
What Does Fee-Only Mean?
Fee-only financial advisors are paid directly by their clients. They don’t receive any kickbacks or commissions for recommending certain securities or investments.
The National Association of Personal Financial Advisors (NAPFA) believes fee-only financial advisors are the most transparent and unbiased advisors you can come by.
Fee-only advisors are typically either registered investment advisors or CERTIFIED FINANCIAL PLANNER® professionals. This is because both types of professionals require a fiduciary duty, which means they are obligated to put their clients’ best interests first.
How Are Fee-Only Advisors Paid?
There are several ways fee-only advisors are compensated. Some popular methods include:
- Hourly. You pay a fixed amount based on the number of hours your advisor spends meeting with you.
- Flat fee. This is similar to the hourly method, but you pay a single flat fee regardless of the number of hours spent meeting with your advisor.
- Percentage of assets under management (AUM). You pay a percentage-based fee depending on the value of your investments. This fee is typically around 1%.
What Are the Benefits of a Fee-Only Advisor?
If you’re in the market for a financial advisor, here are three reasons why you should choose a fee-only advisor:
1. No Commissions
No matter how pure an advisor’s intentions are, it can be hard to provide unbiased recommendations when they know they’ll get a kickback or commission. But this isn’t the case for fee-only advisors. They have no incentive to push certain products because they don’t sell any products at all. They’re solely compensated by you.
2. They’re Fiduciaries
Fee-only advisors are fiduciaries, which means they’re legally and ethically required to act in your best interest at all times. They are quick to disclose any conflicts of interest and only give advice based on your unique situation and goals.
3. You Get Objective Advice
It’s easy to act on emotion when you’re dealing with your own money. There’s talk of a stock market crash, so you want to change your investing strategy. A family member needs to borrow money, even though you know giving it to them would jeopardize your financial security. You want to live a comfortable life in retirement, but you’re not sure if you’re on track.
In situations like these, it’s nice to have someone you can go to for objective advice.
Why Bellerophon Wealth Management Is Fee-Only
At Bellerophon Wealth Management, we put clients first—always. As a fee-only financial advisor, I’m committed to transparency, objectivity, and loyalty. My focus is solely on your goals, free from commissions or hidden agendas.
Whether you’re navigating a specific financial challenge or building a comprehensive wealth strategy, we’re here to guide you with clarity and confidence. Ready to get started? Email trent.derrick@lpl.com or call 843-868-4042.
About Trent
Trent Derrick is a financial advisor and the founder of Bellerophon Wealth Management. He specializes in working with small business owners and professionals, providing comprehensive financial planning services including tax planning strategies, cash flow management, and retirement planning. As a Chartered Market Technician® (CMT®), Trent also brings deep technical market analysis expertise to help clients make informed investment decisions.
Trent obtained his bachelor’s degree from the College of Charleston, studied economics at the University of South Carolina, Columbia, and is a Chartered Market Technician® (CMT®) professional. Outside of the office, he serves as a guest lecturer for the College of Charleston’s MBA program and acts as chairman of the Market Technician Association’s Charleston chapter. To learn more about Trent, connect with him on LinkedIn.
The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.
Bellerophon Wealth Management and LPL Financial do not offer tax advice or services.