Members of certain financial and investment advisory groups have chosen to work with their clients solely on a client-paid “fee-only” basis.

Members of certain fee-only advisory organizations have pledged to work with their clients through fee-only compensation arrangements. These organizations do not issue certifications. They are membership organizations.

National Association of Personal Financial Advisors (NAPFA)

NAPFA registered financial advisors sign a fiduciary oath attesting that they will not receive any compensation for their services other than that provided by their clients. (See: http://www.napfa.org )

To become NAPFA registered, an advisor must:

• provide a copy of their completed Form ADV
• hold the CFP, ChFC, or CPA/PFS designations or prove they have completed the equivalent education
• have at least three years experience delivering comprehensive financial planning services, and
• successfully submit a sample plan for peer review and approval.

Garrett Planning Network, Inc. (GPN)

The Garrett Planning Network is a nationwide network of fee-only planners who usually bill by the hour. Members sign an oath to accept compensation only from their clients. GPN “members must hold or be working toward obtaining their CFP credentials (or other similar equivalent such as CPA/PFS or ChFC).” Membership in NAPFA is encouraged, but not required. (see: http://www.garrettplanningnetwork.com )

See these related articles on advisor compensation:

• Does it matter how financial planners and investment advisors are paid?
• Financial planner and investment advisor compensation paid by clients
• Financial planner and investment advisor compensation paid by third parties
• Fee-only compensation aligns the interests of clients and their financial advisors
• The securities industry calls marketing and selling “advising”
• Many individual investors are not fooled by an ethically challenged securities industry