What type of payment structure does a fee-only investment adviser have?

A fee-only investment adviser is one who receives compensation solely from their clients for the services they provide. This payment structure typically involves charging a flat fee, hourly rate, or a percentage of the assets under management. The key characteristic of this model is that it eliminates any potential conflicts of interest that can arise when advisers earn commissions from product sales or receive compensation from third parties, such as investment companies or real estate transactions. By aligning their interests directly with their clients' financial success, fee-only advisers are more likely to provide objective, unbiased advice, fostering a clearer and more transparent relationship with their clients. This structure enhances trust and accountability, allowing clients to understand exactly what they are paying for and ensuring that the adviser is motivated to act in the best interests of their clients.