Is fee only advice automatically better?

Question

The situation is that I have spoken with two financial professionals who both say they act in my best interest, but they are paid differently and offer different products. The situation is that one uses the word fiduciary frequently, while the other emphasizes licenses and experience. What should a planner examine before suggesting a course of action?

Soradin · Accepted Answer

Fee only compensation may reduce some sales conflicts, but skill, service quality, cost, and other conflicts still require review. Within the broader financial plan, ask when the professional acts as a fiduciary, how compensation works, and whether recommendations involve conflicts. As part of the financial analysis, a fiduciary is expected to act in the client's best interest within the scope of the relationship, but titles alone can be confusing.

Is fee only advice automatically better?

Soradin

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