Financial Advisor Fees Explained (Fees & Fiduciary Standards)
How Financial Advisors Are Paid (Fees & Fiduciary Standards)
If you are researching financial advisors, one of the first questions you are likely asking is how they are paid. It is also one of the most misunderstood parts of financial advice.
Some advisors earn commissions. Some charge fees. Some do both. The structure matters because it influences how advice is delivered and how conflicts are handled.
Understanding these differences helps you decide whether an advisor’s approach aligns with what you are looking for.
The Main Ways Financial Advisors Are Paid
There are three common compensation models in the financial advice industry.
Commission-Based Financial Advisors
Commission-based advisors are paid by selling financial products such as insurance policies, annuities, or certain investment products. Compensation is typically built into the product itself, which can make costs less visible and may influence recommendations.
Fee-Based Financial Advisors
Fee-based advisors are paid through client fees and may also receive commissions in certain situations. The key distinction is how conflicts are disclosed and managed, and whether the advisor is acting under a fiduciary standard.
Fee-Only Financial Advisors
Fee-only advisors are compensated exclusively by fees paid directly by clients and do not receive commissions of any kind. This is one structure under which fiduciary advice can be delivered, but it is not the only way fiduciary responsibility exists. What matters most is not the label alone, but whether advice is provided under a fiduciary obligation with clear disclosure.
How We Are Paid at Worthen Financial Advisors
Worthen Financial Advisors operates as a fee-based, fiduciary firm, providing financial planning and investment management for an ongoing advisory fee.
Worthen Financial Advisors is compensated only by our clients. To be clear, we do not receive any commission compensation from investment product providers.
Additionally, financial planning is included as part of the ongoing advisory relationship. This is in contrast to some advisory firms who charge a separate, annual planning fee in addition to investment management fees. Our approach is to include planning within the advisory fee so planning, implementation, and ongoing adjustments remain aligned over time. To recap, Worthen Financial Advisors does not charge a separate financial planning fee outside of assets under management.
In certain situations, clients may choose to work with our affiliated property and casualty insurance brokerage. If a client elects to place personal or business insurance through Worthen Insurance Group, commissions may be paid separately to that company for those insurance services. Using the insurance brokerage is optional, and there is no requirement or expectation to use any affiliated services.
Our financial planning and investment advice is provided under a fiduciary standard, meaning recommendations are made in your best interest with transparency around how we are compensated.
Every compensation structure involves tradeoffs. What matters is whether those tradeoffs are disclosed and whether advice is delivered under a fiduciary obligation. Our responsibility is to be transparent about how we are compensated so clients can make informed decisions with confidence.
Why This Structure Exists
Many clients prefer simplicity and coordination as their financial lives become more complex. Investments, retirement income, and risk management affect one another, and decisions in one area often have consequences in another.
For clients who want it, having fewer professionals involved can reduce friction and make ongoing adjustments easier. For clients who prefer to keep certain services elsewhere, there is no expectation or obligation to use any affiliated services.
Why We Do Not Offer One-Time Financial Plans, Project-Based or Hourly Planning
In the past, we offered one-time financial plans and hourly, project-based planning. We no longer do.
In practice, clients who chose a one-time plan or hourly planning often needed more support than the structure allowed. After plan delivery, many requested several follow-up meetings because they were unsure how to implement the recommendations, how to prioritize decisions, or how to coordinate the different parts of the plan over time.
Even after meeting multiple additional times, far beyond what the original engagement required, a common pattern remained. Clients still did not feel confident managing the plan long term in the way they wanted it to be managed. At the same time, many were not interested in an ongoing advisory relationship.
That combination created a gap. These one-time plan clients wanted competence, clarity, confidence, and coordination, but the one-time flat fee planning model does not provide those things in a durable way.
Financial planning is not just about knowing what to do. It is about knowing what not to do, how to implement decisions, when to adjust them, and how changes in one area affect everything else. Without ongoing guidance, even a well-designed plan can become difficult to execute or slowly fall out of alignment.
For that reason, continuing to offer one-time plans felt like a disservice. It left clients with a detailed document but without the long-term support they were seeking, and without the confidence they wanted.
Today, we work exclusively with clients who want an ongoing relationship, so planning, implementation, and adjustments stay coordinated over time. That structure better supports the outcomes clients consistently tell us they want.
Who This Is and Is Not a Fit For
We work with individuals and families who want a long-term advisory relationship. That allows us to understand goals more deeply, adapt strategies as life changes, and provide continuity for spouses and beneficiaries over time.
This is not a good fit for someone seeking a one-time opinion or a short-term engagement.
Some people initially believe they want to manage everything themselves. After an initial conversation, they often realize how many moving parts are involved long term and decide they want ongoing guidance rather than handling it alone.
Frequently Asked Questions
Are you a fiduciary financial advisor?
Yes. Angela is a CFP® professional and provides financial planning and investment advice under a fiduciary standard, meaning your best interest comes first at all times.
Do you receive commissions?
We are compensated through an assets-under-management fee for financial planning and investment management. Clients may choose to use Worthen Insurance Group, which pays commissions for insurance services, for their own convenience or comfort. Using the insurance brokerage is optional with no expectation or obligation to use affiliated services.
Can you help me manage an inheritance?
Yes. We regularly work with individuals and families who have received or expect to receive an inheritance. This often includes tax planning, account coordination, and helping you slow down before making permanent decisions.
Can you help with a 401(k) rollover?
Yes. We help evaluate rollover options, consolidate old employer plans, and compare Roth versus traditional strategies as part of a long-term retirement plan.
Do you provide tax-efficient retirement planning?
Yes. Tax planning is a core part of our ongoing process. This may include Roth conversion analysis, RMD planning, Social Security timing, and coordinating taxable and tax-deferred accounts. We focus on forward-looking planning rather than tax preparation.
Can you help my spouse if something happens to me?
Yes. Many clients value having a long-term relationship in place so their spouse already has a trusted advisor during a difficult transition.
Next Steps
If you are comparing advisors and want to understand whether an ongoing fiduciary relationship makes sense for you, the next step is usually a conversation.
