Selling financial products and receiving commissions may create limited objectivity and independence

Financial advisors operate under one of three basic compensation structures: commission, fee-and-commission, and Fee-Only. 

Stock Brokers compensated by commissions are salespersons whose pay is based on the products their clients buy.  Sales persons' "perks", in addition to pay, can also detract from commissioned advisors’ independence and objectivity. 

Financial Representatives or fee-and-commission advisors receive fees from the client for their recommendations, plus commissions for the products (such as mutual funds) the client purchases; they get paid for their biased advice and again for the implementation of that advice.  This compensation structure is often called fee-based.
 

In contrast, Fee-Only advisors—such as Solomon Asset Management—are compensated solely by client fees.  We do not sell any products or receive commissions of any type from any source.  Our advice is objective and independent; our interests are aligned exclusively with our clients’ interests.

"Growing numbers of consumers are looking for Fee-Only planners.  They are generally considered more objective than those who earn their living from sales commissions.  Fee-Only planners charge purely for advice."

         
-Finance Author Jane Bryant Quinn

"With a Fee-Only advisor you can see what the total bill is; with a fee-and-commission advisor, the costs may look smaller but can be the same or higher than Fee-Only advice."

         
-Wall Street Journal

"Avoid advisors who earn commissions on products they sell."

         
-Business Week

"My choice would be a Fee-Only planner."

          -Newsweek

 "Use a planner whose self-interest is aligned exclusively with your own…Consumer Reports continues to believe that Fee-Only planners remain your best option."

          -Consumer Reports