http://financialawakenings.com/weekly-column/what-you-get-from-a-financial-planner/ Financial insight on the exterior and interior aspects of money and finance. Tue, 09 Mar 2010 18:56:04 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://financialawakenings.com/weekly-column/what-you-get-from-a-financial-planner/comment-page-1/#comment-17430 Justin Hooper Tue, 17 Nov 2009 00:04:48 +0000 http://financialawakenings.com/?p=2345#comment-17430 This is an interesting discussion but one in which the terms need definition. For example, what does 'fee-only' mean? What is a 'fee' as opposed to a 'commission'? My definition of 'fee-only' is that the client and planner agree the method of calculation and collection of the amount payable. However, I have often seen stated a definition of 'fee-only' as time-based fees. IN other words, an asset based fee would not be regarded as a fee under this definition. I believe the debate needs to go to the next level - what basis of fees leads to the least conflict and most sustainablility of the relationship? There at at least 5 options on which the fees could be based; time, task, assets, transaction or performance. This is an interesting discussion but one in which the terms need definition.
For example, what does ‘fee-only’ mean? What is a ‘fee’ as opposed to a ‘commission’?
My definition of ‘fee-only’ is that the client and planner agree the method of calculation and collection of the amount payable. However, I have often seen stated a definition of ‘fee-only’ as time-based fees. IN other words, an asset based fee would not be regarded as a fee under this definition.
I believe the debate needs to go to the next level – what basis of fees leads to the least conflict and most sustainablility of the relationship? There at at least 5 options on which the fees could be based; time, task, assets, transaction or performance.

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