September 24, 2017

“Fee based” isn’t the same as “fee only”

Liz Weston

Liz Weston of answered a question which ended:

I have a hard time trusting anyone in the financial world.

She answered in a blog entitled “Fee based” isn’t the same as “fee only”:

It’s possible, but rather unlikely, that you were dealing with a fee-only financial planner. Some planners charge fees, but they also take commissions — and annuities tend to pay fat commissions.

If you want advice that’s free of such conflicts, you’ll need to look for a true fee-only (not fee-based) financial planner. You can get referrals from the National Assn. of Personal Financial Advisors at

I wish that every investor understood what the difference is.

We have had consumers who are interested in our services who say that they are only considering fee-only financial planners. But when asked who else they are considering list three “fee-based” advisors in our area. Consumers deserve a fiduciary standard of care. Here are ten questions to ask any financial advisor before you work with them.

I really wish investors understood what the difference is.

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About David John Marotta

David John Marotta+ is the Founder and President of Marotta Wealth Management, Inc. He played for the State Department chess team at age 11, graduated from Stanford, taught Computer and Information Science, and still loves math and strategy games. Favorite number: e (2.7182818...)

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