A fee-only financial planner is paid a set rate for the services they provide their clients or a percentage of the assets they manage. Their only compensation comes from fees paid directly from their clients instead of receiving commissions on the sale of a financial product.
A fiduciary is someone who always acts in the best interest of the client. Fiduciary financial advisors are held to the highest standard when it comes to working with clients. The fiduciary standard is much more than a suitability standard that many hybrid advisors or brokers are held to. A fiduciary is also able to make investments on the clients behalf if authorized to do so. By choosing to work with an advisor who acts in a fiduciary capacity, clients can be confident that their advisor is transparent about any potential conflicts and that they will act in their best interest.