You realize you might need a financial advisor. Perhaps you want to invest profits from a new business, find a local financial advisor to build a retirement roadmap, or ensure your family's investment plan is on the right track. Maybe you are switching jobs and need a seamless strategy to execute a 401(k) rollover.
You know that professional guidance can make a massive difference in your net worth, but one major question keeps holding you back: How much will a financial advisor cost?
When you search for answers, you are hit with a barrage of confusing industry jargon:
It is enough to make anyone's head spin. Fortunately, the difference is simple when you strip away the marketing fluff.
The distinction between these two terms comes down to how your advisor makes their money, and how many inherent conflicts of interest they face.
| Feature | Fee-Only Financial Advisor | Fee-Based Financial Advisor |
|---|---|---|
| How They Are Paid | Flat fee or a transparent % of assets. Only paid by the client. | Charged fees plus third-party commissions on sales. |
| Fiduciary Duty | Held to a strict, continuous fiduciary standard. | Dual-registered; can switch hats to act as a salesperson. |
| Product Sales | Does not sell high-commission insurance, annuities, or mutual funds. | Incentivized to cross-sell proprietary financial products. |
A fee-only financial advisor is compensated directly by their clients for financial planning and investment management. They do not earn commissions, kickbacks, or bonuses from financial products, which minimizes conflicts of interest and aligns the advisor's success entirely with your own.
One Day In July is a fee-only financial advisor. We do not sell financial products, nor do we accept commissions from mutual fund or insurance companies.
We are independent financial advisors, meaning we answer directly to you—not a massive Wall Street corporate parent. As a fiduciary, our financial advisors are legally obligated to operate in your best interest at all times.
In contrast, fee-based financial advisors can charge you an advisory fee while also pocketing commissions on the backend for selling you specific investments. Because they make money from product providers, their recommendations may be influenced by sales targets rather than what is genuinely best for your portfolio.
Our stance is that if you consistently pay more than one percentage point in annual advisory fees over time, we believe you are paying too much.
At One Day In July, we believe total fee transparency is the bedrock of investor trust. When you sit down with our team, you will understand exactly what you will pay before you ever sign on as a client. There are no hidden wrap fees, no surprises, and no fine print. You can review our full fees schedule at any time.
High financial advisor fees quietly erode your long-term compound growth. Over a decade or two, paying an extra percentage point can mean losing tens or hundreds of thousands of dollars from your ultimate retirement nest egg.
We strive to be always direct, honest, and fiercely committed to lowering the cost of investing. Discover how our client-first model has driven our success by viewing the One Day In July growth story here.
Wouldn’t you rather know exactly what you are paying now, before it impacts your financial future? Schedule a complimentary portfolio review with a fee-only advisor today.
Get Started Today.
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