The vast majority of our compensation comes directly from our clients through transparent fees. As fiduciaries, we do not receive commissions on investments, and every recommendation is measured against one standard: does this move you closer to your goals?
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defining the difference
Fee-Only
Paid exclusively by the client (no commissions,
no third-party payments of any kind).
Fee-Based Fiduciary
Primarily client-fee compensated, with the
flexibility to access certain specialized products.
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Our standard
Fiduciary
Legally and ethically bound to act in your best interest, always |
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commissions
$0
We never receive commissions on investment recommendations |
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Recognition
Top 10
Fastest growing RIAs in the US (SmartAsset, 2023) |
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Key differences between fee-only, fee-based, and commission-based models.
| Feature | Fee-Only | Fee-Based (Sonoma Wealth) | Commission-Based Broker |
|---|---|---|---|
| Primary payor | Client | Client | Product companies |
| Fiduciary duty | Yes | Yes, for all advisory services | No, suitability standard only |
| Commissions | Never | Occasionally, always disclosed | Primarily, often undisclosed |
| Potential conflicts | Low | Disclosed in writing | High |
| Service breadth | Investments & Planning | Comprehensive planning & protection | Product sales |
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Why it matters
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| Transparency transforms the relationship
When you know precisely what you're paying, the relationship shifts from a transaction to a partnership. At Sonoma Wealth, our success is tied to yours. If your portfolio grows, our compensation grows. If it shrinks, we feel the impact alongside you. This alignment of incentives is at the heart of how we work.
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Common myths about advisor compensation
Three misconceptions we hear often, and the reality behind them.
1 | Myth
"Fee-only is always cheaper."
Not necessarily. Fee-only advisors sometimes charge higher flat fees to cover overhead, since they cannot facilitate certain products directly. When you account for all costs, including products handled by a third party, the total may be comparable or higher than a transparent fee-based structure.
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2 | Myth
"Fee-based advisors are just salespeople." This is a common misconception. A fee-based fiduciary maintains the flexibility to offer specialized products, such as certain insurance policies, that require a commission structure rather than referring you to another firm. The fiduciary obligation remains unchanged for all advisory services.
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3 | Myth
"If I'm not paying a fee, it's free." There is no such thing as free advice in finance. If you are not paying a direct fee, the products you hold are likely carrying high internal costs that compensate the person who sold them to you. Those costs rarely appear clearly on a statement.
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The key difference is the source of compensation. Fee-only advisors accept only direct client fees, with no commissions of any kind. Fee-based advisors like Sonoma Wealth are primarily compensated through client fees, but may also receive commissions from specific products such as insurance. Any such compensation is disclosed in your written advisory agreement before a recommendation is made.
Yes. All advisors at Sonoma Wealth act as fiduciaries when providing investment advice, meaning we are legally and ethically required to act in your best interest. This duty applies to investment recommendations, financial planning, retirement strategies, and every other aspect of the advisory relationship. The fee-based structure does not change or diminish this obligation.
No. We do not receive commissions on investment recommendations. In some cases, we may receive compensation related to insurance products such as life, disability, or long-term care coverage, when that product is genuinely the right fit for your situation. Any such compensation is disclosed in your written agreement, and we encourage you to ask us directly about how we are compensated on any specific recommendation.
Ask them directly: "Do you or your firm receive any compensation from third parties for the products you recommend?" You can also request their Form ADV, a disclosure document that all registered investment advisors are required to file, which details their compensation structure, conflicts of interest, and business practices. Our Form ADV is available upon request.
For complex retirement planning, either a fee-only or fee-based fiduciary is significantly better than a commission-based broker, because the advice is more likely to be objective and holistic. The more important question is whether your advisor is a fiduciary, not which suffix follows "fee." At Sonoma Wealth, we model retirement income scenarios, Social Security claiming strategies, Roth conversion opportunities, and tax-efficient withdrawal sequencing as part of every retirement plan.
Our team holds the CERTIFIED FINANCIAL PLANNER™ (CFP®) designation, the gold standard in comprehensive financial planning, along with the Accredited Investment Fiduciary™ (AIF®) and the Certified Exit Planning Advisor® (CEPA®) for business owner clients. Our team also includes CTEC-certified tax professionals. You can verify any advisor's credentials and registration at FINRA BrokerCheck or the SEC's IAPD database.
It begins with a 15-minute introductory call at no cost and with no commitment. We will determine whether your financial situation and goals align with our expertise. If it is a good fit, we schedule a comprehensive discovery meeting and deliver a draft financial plan within two to three weeks. Most clients are fully onboarded within seven to fourteen business days after deciding to move forward. Book your Wealth Analysis HERE.
Schedule a complimentary 15-minute call. No commitment, no cost. Just a conversation about your financial goals.
