Glossary

Fee-Only

Definition

A fee-only adviser is one compensated solely by fees paid directly by clients, accepting no commissions, product payments, or referral compensation from anyone else.

The term is precise and often confused with "fee-based," which means the adviser charges fees and can also earn commissions. Fee-only compensation may take the form of a percentage of assets under management, a flat or hourly fee, or a retainer.

Why it matters in practice

Because a fee-only adviser earns the same regardless of which fund, annuity, or insurance product a client uses, the largest structural conflict in financial advice — being paid by the product — is removed. It does not remove every conflict (an AUM fee, for instance, creates a mild incentive to gather assets), which is why disclosure still matters. How a firm is paid is stated in its Form ADV; ours is published at how we are paid, alongside our fiduciary standard.

Glossary definitions are educational and general. They are not investment, legal or tax advice, individual circumstances vary, and simplified definitions necessarily omit edge cases. Figures, limits and rules cited change over time — confirm current rules before acting. Aduna Capital LLC is a California DFPI-registered investment adviser (CRD #311270). Aduna Capital LLC is not affiliated with, endorsed by, or sponsored by CalSavers, the California State Treasurer's Office, CalPERS, CalSTRS, or any other retirement system, employer or school district named on this page.