TruMix Advisors is a fee-only, fiduciary financial planning firm. That means we only get paid by you. No commissions. No product sales. Just straightforward advice.
Before you hire any financial advisor, it helps to know how they get paid. The answer matters more than most people realize. Here are the three main ways financial advisors make money.
1. Fee-only
A fee-only advisor gets paid directly by the client. That's it. No commissions, no outside payments, nothing hidden in a product you buy.
Fee structures can vary. Some advisors charge a percentage of the money they manage for you. Others charge by the hour, a flat project fee, or a monthly retainer. At TruMix, we charge a flat monthly fee. We think that's simpler and fairer. Your bill doesn't go up just because your portfolio grew, and we can advise on assets outside your investment accounts without pressure to move money to us.
Fee-only advisors are also fiduciaries. That means they are required by law to put your interests first. Want to see how TruMix structures its fees? Visit our transparent fee page.
2. Fee-based
Fee-based advisors charge a client fee, but they can also earn commissions on the side. They might get paid by a fund company or insurance provider when they sell you a product.
This doesn't mean fee-based advisors are bad. But it does mean they have outside financial incentives. That can make it hard to know if a recommendation was made for your benefit or theirs.
3. Commissions
Commission-based advisors make money by selling financial products. Things like annuities, mutual funds, or life insurance. The product company pays the advisor, so you may never see the cost directly. It gets built into the product instead.
Again, not all commission-based advisors give bad advice. But the setup can create conflicts. The advisor earns more when you buy certain products. That's worth knowing before you take their advice.
The Bottom Line
Always ask an advisor: "How do you get paid?" It's one of the most important questions you can ask. The fee-only model removes the most common conflicts of interest. Your advisor only wins when you win.
Want to learn more about working with a fee-only, fiduciary team? Read about what we do at TruMix, or schedule a conversation with us.
Frequently Asked Questions
What is the difference between a fee-only and fee-based advisor?
A fee-only advisor is paid only by the client. A fee-based advisor charges a client fee but can also earn commissions from product sales. That difference affects whose interests the advisor is really serving.
Is fee-only always better than fee-based?
Fee-only is considered the gold standard for conflict-free advice. It's why NAPFA, the National Association of Personal Financial Advisors, requires fee-only compensation for membership. That said, no fee structure guarantees good advice on its own. It's just one important thing to look for.
What is a fiduciary financial advisor?
A fiduciary is legally required to act in your best interest. Not just sometimes. Always. Not all financial advisors are fiduciaries, so it's worth asking before you hire anyone.
How much does a fee-only financial advisor cost?
It depends on the advisor. AUM-based advisors typically charge between 0.5% and 1.5% of your managed assets each year. Flat-fee advisors like TruMix charge a fixed monthly amount that depends on your specific situation.