Email Your Client: Understanding advisor compensation: fee-only

If you’re unsure how to begin the conversation about how you’re paid, here is a sample email you can send to explain fee-only compensation to clients.

[Subject] How fee-only advisor compensation works

[Date]

Dear [first name],

I hope you’re well. I want to emphasize that I value both your business and your commitment to investing. Hard work truly does pay off, and I’m going to continue to work to secure your future.

In order to make sure our advisor-client relationship is as transparent as possible, and since you trust me to manage your money, it’s only fair that you fully understand my compensation structure.

I use fee-only compensation, which means the only payment I receive from managing your money comes directly from you. I don’t receive any incentives from investment fund manufacturers or dealers for placing their products with clients.

Instead, I charge [explanation of your specific fee structure]. This allows me to choose the investment products I believe are in your best interests.

If you’d like to talk about this further, don’t hesitate to call me at [phone number]. I’m always happy to discuss all aspects of investing to make sure you are completely comfortable with the process.

Sincerely,

[first name] [last name]

[Official title]