independent • fee-only • fiduciary
Fee-Only Financial Advisor
in Toledo, Ohio
Advice Should Be on Your Side
Fee-only means your advisor is paid only by you. It describes who pays, not how much you pay or how fees are calculated. Understanding the difference can help you evaluate an advisor’s recommendations, what you’ll pay, and whether the relationship is right for you.
UNDERSTANDING THE DIFFERENCE
Same Title. Different Roles.
Financial professionals may share the title “financial advisor” while being paid differently and operating under different professional standards. Compensation doesn’t determine the quality of advice, and fiduciary responsibilities depend on the role and services provided. Understanding these differences helps you evaluate recommendations and ask more informed questions.
Commission-Based
Compensation typically comes from commissions paid by product providers or generated through transactions.
Broker or insurance agent.
"Will you earn a commission if I follow this recommendation?"
Fee-Based
Clients pay advisory fees, but the professional may also receive commissions from product sales.
Investment adviser and potentially a broker or insurance agent.
"Which capacity are you acting in for this recommendation?"
Fee-Only
Clients alone pay for advisory services.
Investment adviser or financial planner without commissioned product sales.
"How would your fee change if I followed this recommendation?"
Where Ruiz Financial Group Stands
We provide investment advisory services without acting as a commissioned broker or insurance agent. We evaluate insurance, annuities, investments, and other financial solutions as part of your overall financial plan, but we don't earn commissions or referral fees from recommending them. So when we recommend an insurance policy or annuity (or recommend against one), no commission rides on the answer.
As a registered investment adviser, we act as a fiduciary when providing investment advice. We’re also members of the National Association of Personal Financial Advisors (NAPFA), a professional organization dedicated to fee-only financial advice.
HOW FEES ARE CALCULATED
Fee-Only Doesn't Always Mean Flat Fee
Fee-only describes who compensates an advisor, not how their fees are calculated. Some advisors charge a percentage of investments managed, while others use subscriptions, project fees, or hourly rates. Each approach can be fee-only, but the total cost and services included may differ.
When comparing advisors, ask what you’ll pay annually in dollars, what services are included, and how those fees could change over time.
Asset-Based Fees
An advisor charges a percentage of the investments they manage. Your dollar fee generally changes as the value of those investments changes.
Project-Based Fees
A defined fee for a specific planning or consulting engagement. The scope, deliverables, and fee are agreed upon before work begins.
Subscription / Retainer
An ongoing fee for financial planning, typically paid monthly or quarterly. The amount is generally based on the planning agreement rather than investment account values.
Hourly Fees
A fee based on time spent providing specialized advice or consulting. The hourly rate and estimated total cost are discussed before work begins.
TRANSPARENCY MATTERS
How We Handle the Conflicts That Remain
Fee-only compensation removes commissions from product sales, but it doesn’t eliminate every potential conflict of interest. For example, when an advisor is paid based on assets under management, recommending that you keep money invested rather than pay down debt or pursue another financial goal can affect the advisor’s compensation.
At Ruiz Financial Group, we disclose these potential conflicts in our Form ADV and consider them when evaluating recommendations. When a recommendation could affect our compensation, we’ll tell you.
If you prefer financial planning without an asset-based management fee, our one-time SMART Planning™ service provides that option without requiring you to transfer your investments to us.
Let's Talk About What Matters to You
Understanding how your advisor is compensated is an important part of choosing who to work with. Just as important is finding someone who understands your goals, explains your options clearly, and puts your interests first.
During a complimentary introductory meeting, at our Toledo office or virtually, we’ll answer your questions, explain which relationship fits your needs, and show you what it would cost before you decide anything.