Fee-only advisors can only receive compensation directly from you (similar to a CPA or attorney), versus a Fee-Based advisor that can collect both a fee from you as well as receive commissions and other compensation from their broker-dealer or vendor that provides the financial product (mutual funds, annuities, unit trusts, etc.)

fee only financial advisor

A Fee-only advisor typically either charges a rate based on the percentage of assets they manage for you or they charge an hourly rate for services rendered.

A Fee-based advisor can receive fees from multiple sources.  Advisors generally must disclose how they are compensated at least at the beginning of the relationship in a brochure or application.  They do not however have to disclose all the forms of compensation they receive on an ongoing basis (such as your monthly statement).  One such broker’s brochure states how their brokers (Fee-based advisor) are paid as follows:

“A portion of the fees charged for products and services go to the financial advisors in the form of commissions.  Advisors may receive sales awards or financial incentives for the sale of a particular product.  Advisors may receive referral fees when advising clients to choose certain banking or insurance products.  Mutual fund companies as well as other financial vendors may reward our advisors with sales incentives, sales loads or ongoing marketing fees.  Product companies may pay for training which may include the cost of travel, lodging, meals, entertainment, recreation or gifts to attend.”

A Fee-only advisor receives none of the above compensation packages and as such does not have at least a perceived conflict of interest when choosing one investment over another for their client.


K-Mack Financial, LLC (“K-Mack) is a Registered Investment Adviser. K-Mack and its representatives are in compliance with the current registration requirements imposed upon registered investment advisers by those states in which K-Mack maintains clients. K-Mack may only transact business in those states in which it is notice filed, or qualifies for an exemption or exclusion from notice filing requirements. K-Mack’s website and Facebook is limited to the dissemination of general information regarding its investment advisory services to prospective clients where providing such information is not prohibited by applicable law. Accordingly, the publication of K-Mack’s website on the Internet should not be construed by any prospective client as K-Mack’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

You should contact your attorney before making any decisions with legal implications. For additional information about K-Mack including registration status, fees, and services, contact us for a copy of our disclosure brochure.

K-Mack does not make any representations as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to K-Mack’s web site or Facebook or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.