Why Fee-Only Is the Only Way to Go

VanderPol Investments is proud to be a fee-only advisory firm but what exactly does that mean? A fee-only financial planner is one who is compensated solely from the client. They do not accept any fees or commissions based on the sale of a product.

There are many benefits to choosing a fee-only financial planner. Fee-only planners have no inherent conflicts of interest because their compensation is not based on product sales. Fee-only planners are not influenced by an outside brokerage firm because their compensation is the same regardless of their recommendations. Eliminating potential conflicts of interest allows fee-only planners to offer more comprehensive advice to their clients. Many fee-only advisors are also committed to upholding a fiduciary standard in which they are required to always act in their clients' best interest. VanderPol Investments is a Registered Investment Advisor which means that our fiduciary responsibility to our clients is regulated by the state of Michigan. 

 

Fee-Based vs Fee-Only

Although they may appear similar, "fee-based" and "fee-only" are not the same. Fee-based financial planners may charge both fees and commissions based on the products they sell. Many fee-based advisors hold licenses that allow them to sell investments or insurance products for a commission. They may also have a revenue sharing agreement with certain product providers. This introduces unwanted conflicts of interest into the advising relationship. With a fee-only financial planner, you can be sure that your portfolio is being managed with your best interest in mind.

Learn more about VanderPol Investments' fee structure here.