At Divergent Planning, we have been serving pre-retirees, mid-career professionals, and federal government employees since 2010. With headquarters in Bethesda, MD, and advisors in Tysons, VA, our Registered Investment Advisory firm provides comprehensive financial planning and investment management throughout Maryland, Virginia, Washington DC, and nationwide.

We believe that you are best served when your financial advice is objective and your fees are transparent. That is why we embrace our role as independent, fee-only financial advisors.

As fee-only financial advisors, we do not sell products and do not accept commissions or referral fees. We are paid by you, the client, and we make sure you always know what you are paying for.

We embrace our status as fee-only financial advisors in Maryland, Virginia, and Washington DC because it enables us to serve as your financial advocate. Unburdened by conflicts of interest, we can provide unbiased advice meant only to help you reach your goals.

 What Is the Difference Between a Fee-Only and Fee-Based Financial Planner?

In the financial services industry, you will come across three general types of fee structures:

• Commission-based

• Fee-based

• Fee-only

The commission-based fee structure seems pretty obvious: The professional recommending financial products to you will receive a commission if you buy the products.

But what about fee-based and fee-only? Just one word’s difference exists between the two phrases, and a lot of people assume that means they are interchangeable. Unfortunately, that is not the case.

A fee-only financial advisor—like our firm—serves you much as your doctor or attorney does. You receive a service, and you pay for the service. The process is straightforward and transparent.

With a fee-based advisor, you also pay the advisor, but they can still earn commissions from a third party for specific products you end up purchasing.

Just like a purely commissioned financial professional, we think fee-based professionals muddy the waters. This is not to criticize the professionals who operate under either of these fee models. Many are hardworking and sincere.

But commission- and fee-based models increase conflicts of interest, not decrease them. And it is your money and your goals that can suffer in that conflict. That is why we think that the fee-only model is superior: It minimizes potential conflicts of interest and keeps your advisor’s focus on you.

When the fee-only service is combined with a fiduciary responsibility to your best interests, you can be even more confident that your financial advisor’s recommendations serve you and not anyone else.

 How Do Fee-Only Financial Planners Get Paid?

You should have a good understanding of the services you need when you begin the process of looking for a financial advisor. Ask yourself: 

• Am I just looking for help with my investment portfolio?

• Do I want a financial plan created that I implement on my own?

• Do I need specific or limited guidance in one area of my finances?

• Do I seek ongoing help with all areas of my finances and financial goals?

Knowing what you want will help you locate the financial advisor whose services match your needs. For example, some advisors will create a financial plan for you to implement on your own. Others, like our Bethesda, MD-based advisory firm, offer ongoing financial planning and investment management.

The services the advisor offers generally dictate the fees they charge. You might end up paying:

• Flat annual fee

• Hourly rate

• Per project

• On retainer

• For assets under management

Most fee-only advisors offer the assets under management (AUM) model. This means that you pay based on a percentage of assets they manage for you.

Make sure you understand how you are charged when selecting an advisor. Ask for their Form ADV or Form CRS, which breaks down the fees they charge. As a fee-only advisor, we strive to make our fees clear. We want you to understand how we get paid because your trust is essential to a successful relationship.

Our Comprehensive Services

Our advisory team of fee-only financial advisors provides personal financial planning tailored to your goals, concerns, and needs.

Our services include:

We complement our comprehensive services with a fee-only model that eschews commissions and accepts compensation from only our clients. We think serving as a fee-only advisory firm aligns our interests with yours even more.

Want to Learn More About Fee-Only Advisors?

Some professional organizations require their financial planners to be fee-only, and those organizations make a great resource to learn more about the fee-only fee structure.

You can visit the websites for:

• National Association of Personal Financial Advisors (NAPFA): You can look for a NAPFA member using their Find an Advisor tool. Check out the “Consumers” tab for helpful financial resources.

• FeeOnlyNetwork.com: Another resource for finding NAPFA members, this website also answers such questions as “Why Should I Hire a ‘Fee-Only’ Advisor?” and “What Makes a Financial Advisor a Fiduciary?”

• Garrett Planning Network: This organization was created to serve underserved and middle-income earners. In addition to searching for members, you can check out How to Choose an Advisor for questions to ask potential advisors.

• XY Planning Network: If you are a member of Generation X or Y, you can seek a financial advisor here with expertise in your needs. You can even search by specialty, such as blended families, LGBTQIA, and Christian business owners.

We also welcome the opportunity to answer any questions you may have about our fee-only services.

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Let’s see how we can help you achieve your financial goals.
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