Advice That Always Puts You First
NAPFA-Registered Financial Advisors act as fiduciaries at all times, without exception. That means your advisor is required to put your interests first in every recommendation and provide financial advice that is Fee-Only, transparent, and free from commissions or product-based incentives.
What This Means for You
When you work with a NAPFA-Registered Financial Advisor, you receive advice that is always guided by your goals, not sales incentives or outside compensation.
These advisors operate exclusively in a Fee-Only capacity and are required to act in your best interests at all times.
In practice, that means:
- Your advisor must put your interests first in every recommendation
- Your advisor is compensated only by you, not by product sales or commissions
- Your advisor does not receive outside incentives that could influence advice
- Your financial plan is built around your goals and full financial picture
- Your advisor provides ongoing, transparent, planning-based financial guidance
How Fiduciary Advice Works Day-to-Day
The NAPFA Fiduciary Standard is not just a definition. It describes the level of trust you can expect from your advisor.
Always acting in your best interest
Recommendations are made based solely on what supports your financial goals.
Fee-Only compensation
Advisors are paid directly by clients and do not earn commissions or product-based incentives.
No sales pressure or product incentives
Advice is not influenced by quotas, product sales, or outside compensation.
Transparent and planning-focused guidance
Advice is delivered through an ongoing planning relationship designed around your full financial picture.
Fee-Only Matters
The way a financial advisor is compensated can influence the advice they provide.
Some advisors are compensated through commissions on the financial products they recommend. Others may use a combination of fees and commissions. These compensation structures can create incentives that may not always align with a client’s best interests.
NAPFA-Registered Financial Advisors use a Fee-Only model, meaning they are compensated directly by their clients for advice and planning services, not for selling financial products.
This structure helps ensure that recommendations are based on your goals, not product incentives or sales compensation.
How financial advisors are typically compensated
- Commission-based | paid through products they sell
- Fee-based (commission + fee) | a mix of client fees and product commissions
- Fee-Only | paid directly by clients, with no commissions or product incentives
NAPFA-Registered Financial Advisors are required to operate exclusively in the Fee-Only model.
What this means for you
- Advice is centered on your goals
- Recommendations are not influenced by product sales
- Compensation is transparent and agreed upon in advance
- Your advisor’s success is aligned with your relationship, not transactions
Learn More About Financial Planning
Whether you are choosing an advisor or trying to understand better how financial planning works, these resources can help you make informed decisions.
Getting Started
- What is Fee-Only Advising
- Fiduciary 101
- What Is a NAPFA-Registered Advisor
- Financial Planning 101
- Free Resources for Consumers
Choosing the Right Advisor
Questions to Ask Any Financial Advisor
Before choosing a financial advisor, consider asking:
- Are you always acting as a fiduciary?
- How are you compensated?
- Do you receive commissions or incentives of any kind?
- How do you ensure your advice is not influenced by product sales?
- Are you a NAPFA member?