Why Fee-Only? Understanding What It Means

When choosing an investment advisor, how they're compensated matters. Fee-only advisors work exclusively for you—not for commissions or product sales.

What Does "Fee-Only" Mean?

Fee-only is a compensation model where the advisor receives payment solely from client fees—never from commissions, referral fees, or other third-party compensation.

Direct Payment Only

You pay the advisor directly for their services. At Aturan Capital Management, our fee is $350 per hour for advisory consultations and $200 per hour for group workshops.

No Commissions

We do not earn commissions on any investments, insurance products, or financial instruments. Our only income comes from the fees you pay for our time and expertise.

No Referral Fees

We do not receive compensation for referring you to other professionals or services. Any referrals we make are based solely on what we believe is best for your situation.

No Hidden Incentives

There are no sales quotas, bonus structures, or incentive trips tied to recommending specific products. Our recommendations are based purely on your needs.

Fee-Only vs. Other Compensation Models

Understanding the differences helps you make an informed choice about who manages your financial future.

Fee-Only

Compensation: Paid only by clients through hourly fees, flat fees, or percentage of assets under management.

Conflicts: Minimal. Advisor's income is not affected by which investments you choose.

Example: Aturan Capital Management charges $350/hour with no other compensation sources.

Fee-Based

Compensation: Charges fees but also may receive commissions on product sales.

Conflicts: Moderate. Advisor may be incentivized to recommend products that pay higher commissions.

Note: The term "fee-based" sounds similar to "fee-only" but has an important difference.

Commission-Based

Compensation: Paid entirely through commissions on products sold (mutual funds, insurance, annuities).

Conflicts: Significant. Advisor earns more by selling products with higher commissions, regardless of suitability.

Note: Common with brokers and insurance agents who may call themselves "financial advisors."

Why Fee-Only Matters

The way your advisor is paid directly affects the advice you receive.

1

Aligned Interests

When your advisor only earns money from you, their success depends on your success. There's no incentive to recommend products that pay them more but cost you more.

2

Objective Advice

Fee-only advisors can recommend low-cost index funds, direct stock purchases, or even advise you to pay off debt instead of investing—whatever truly serves your interests.

3

Transparency

You know exactly what you're paying. There are no hidden fees embedded in products, no 12b-1 fees, and no surrender charges benefiting your advisor.

4

Trust

You can trust that recommendations are made because they're right for you—not because they generate a commission for your advisor.

Common Questions

Are fee-only advisors more expensive?

Not necessarily. Commission-based products often have higher ongoing costs embedded in expense ratios and fees. Over time, fee-only advice with low-cost investments often costs less.

How do I verify an advisor is truly fee-only?

Ask directly and review their Form ADV Part 2A, which discloses compensation. You can also check if they're members of NAPFA (National Association of Personal Financial Advisors), which requires fee-only status.

Is fee-only the same as fiduciary?

No, but they often go together. "Fee-only" describes how an advisor is paid. "Fiduciary" means they're legally required to act in your best interest. Most fee-only advisors are also fiduciaries.

Does Aturan Capital Management take custody of assets?

No. We provide advice and written plans, but you maintain full control of your accounts. We do not hold your money or execute trades on your behalf.

Our Fee-Only Commitment

At Aturan Capital Management, we are committed to the fee-only model because we believe it's the right way to serve clients.

✓ Hourly Billing

$350 per hour for consultations. $200 per hour for workshops with 3+ participants. No minimums, no long-term contracts.

✓ No Product Sales

We don't sell mutual funds, insurance, annuities, or any other financial products. We provide advice—you decide what to do with it.

✓ No Custody

Your assets stay in your accounts at your chosen custodian. We never take possession of client funds.

✓ Full Transparency

Our Form ADV Part 2A and 2B are available on our Compliance page. We encourage you to review them.

Ready for Conflict-Free Advice?

Experience the difference that fee-only advisory can make for your financial future.