Make sense of advisor fees
Fee-only, fee-based, and investment minimums—in language that actually helps.
Fee-only and fee-based are not interchangeable
Fee-only generally describes compensation paid by clients rather than product commissions. Fee-based may combine client fees with commissions. Neither label tells you the total cost or the full range of conflicts. Ask how the advisor and firm are compensated in your specific relationship.
Ask for the complete cost in writing
Fees may be based on assets managed, a subscription, an hourly rate, a flat project fee, or a combination. Ask about investment expenses, custody charges, trading costs, and other charges beyond the advisor's fee. Compare the same scope of services rather than only a headline percentage.
An investment minimum is not a fee
A minimum indicates the asset level a practice may require for a service. It is different from the cost of that service. A practice with no asset minimum may still charge a planning fee. Confirm eligibility, what assets count, and whether other service models are available.
Read the firm's current disclosures
A firm's Form ADV brochure describes services, fees, conflicts, and other important information. Use the SEC Investment Adviser Public Disclosure website to find the firm, then ask the advisor to explain any terms you do not understand. Confirm current amounts from the firm’s written disclosure; historical filing data is not a price quote.