What Does a Fee-Only Financial Advisor Do?
A fee-only financial advisor is compensated directly by clients rather than receiving commissions for selling financial products.
Wolf Pine Capital is a fee-only wealth management firm. Our compensation comes from the clients we advise. We do not receive commissions for recommending investment products or insurance policies.
That structure makes it easier for clients to understand how their advisor is paid and reduces certain conflicts associated with product-based compensation.
What does fiduciary mean?
As an investment adviser, Wolf Pine Capital has fiduciary obligations to its advisory clients. In practical terms, that means our advice must be provided in the client’s best interest and conflicts of interest must be addressed appropriately.
Being a fiduciary does not mean conflicts can never exist. For example, an asset-based advisory fee can create its own conflicts. The important distinction is that those conflicts should be identified, disclosed, and managed.
How Wolf Pine Capital is compensated
Wolf Pine Capital generally charges an annual advisory fee equal to 0.65% of assets under management. The fee covers the ongoing advisory relationship, including financial planning and investment management.
The fee is calculated based on assets managed by Wolf Pine Capital and is typically deducted from client accounts in accordance with the advisory agreement. The exact calculation, billing frequency, and services are described in Wolf Pine Capital’s advisory agreement and Form ADV.
What is included?
- Ongoing financial planning
- Investment management and rebalancing
- Tax-aware planning and coordination
- Retirement planning
- Estate and beneficiary coordination
- Equity compensation and concentrated-stock planning
- Charitable planning
- Coordination with attorneys, accountants, and other professionals when appropriate
What is not included?
Wolf Pine Capital does not prepare tax returns or draft legal documents. When those services are needed, we coordinate with the client’s accountant, attorney, or other qualified professional.
Clients may also pay separate costs associated with investment funds, custody, trading, account services, or third-party managers. Those costs are not advisory compensation paid to Wolf Pine Capital and are discussed when applicable.
Why fee-only matters
Compensation does not determine whether advice is good, but it does affect the incentives surrounding the advice. A fee-only structure removes commissions and product-sales compensation from the relationship. It gives clients a clearer answer to an important question: how is my advisor paid?
Questions to ask any financial advisor
- Are you required to act as a fiduciary at all times?
- How are you compensated?
- Do you receive commissions, referral fees, or other third-party compensation?
- What services are included?
- Who will actually provide my advice?
- Where will my assets be held?
- What potential conflicts should I understand?
- Can I review your Form ADV and advisory agreement?
