Who pays the advisor?
Identify client-paid planning or asset-management fees, commissions, insurance compensation, referral payments, revenue sharing, and other economic benefits described in the firm’s disclosures.
Quick answer
What is the practical difference between fee-only and fee-based?
A fee-only advisory firm is compensated by clients rather than commissions for selling financial products. “Fee-based” generally describes an advisor or firm that charges advisory fees and may also receive commissions or other transaction-based compensation through an affiliated or separate brokerage or insurance role.
The label is a starting point, not a complete quality test. Compare the legal entity providing each service, when a fiduciary duty applies, all compensation sources, total cost, services included, custody, product limitations, and the advisor’s experience with your needs. GK Wealth Management operates as a fee-only fiduciary RIA.
This page is for general informational purposes only and is not individualized investment, tax, or legal advice. Registration as an investment adviser does not imply a certain level of skill or training. Review Form ADV, Form CRS, services, fees, conflicts, and fit before engaging any advisor.
Decision framework
Four parts of the compensation comparison
Which entity provides the service?
An individual may be affiliated with an RIA, a broker-dealer, an insurance agency, or more than one entity. Confirm which entity is acting for your specific account and recommendation.
What is the total cost?
Add advisory or planning fees to fund expenses, trading or custody charges, product costs, surrender schedules, and tax consequences. A single percentage does not show the full economic impact.
What conflicts remain?
Fee-only reduces certain product-sales conflicts but does not eliminate every conflict. Asset-based billing, service minimums, outside referrals, and proprietary processes should still be understood.
Practical review
Documents and questions that make the comparison concrete
Form ADV
Review services, fees, disciplinary information, other business activities, compensation, and conflicts in the firm brochure and relevant brochure supplements.
Form CRS
Use the relationship summary to compare services, fees, conflicts, standards of conduct, and conversation starters across firms.
Product and implementation policy
Ask whether recommendations can be implemented across an open investment universe, whether the advisor sells insurance or securities, and how outside products are evaluated.
Service agreement
Confirm the exact services, billing method, termination terms, custody arrangement, and whether planning is ongoing or a one-time project.
Common questions
Questions about advisor compensation
What does fee-only mean?
Fee-only generally means the advisory firm is paid by clients through planning or advisory fees and does not receive commissions for selling financial products.
What does fee-based mean?
Fee-based generally means an advisor charges fees and may also receive commissions or other compensation in a brokerage or insurance capacity. The exact arrangement is described in the firm’s disclosures.
Is fee-only automatically better?
No. Fee-only can reduce product-sales conflicts, but clients should still evaluate competence, scope, total cost, remaining conflicts, implementation, communication, and fit.
Talk with GK Wealth Management
Meet with the Reno-based GK Wealth Management team to determine whether its fee-only fiduciary planning and wealth-management model fits your needs.