To verify that an advisor is truly fee-only, ask the five questions below about who pays the advisor, what licenses they hold, whether they receive anything from product companies, and how they uphold their fiduciary commitment, then confirm each answer for yourself in the their firm’s Form ADV on the SEC’s Investment Adviser Public Disclosure (IAPD) website.

1. Are you paid by anyone other than me?

A fee-only advisor is compensated solely by the client, and thus, the answer should be a clear no. To confirm whether that is truly the case, look in their firm’s Form ADV, specifically part 1A, Item 5.E, which lists every way their firm is compensated. A fee-only advisor’s firm will not check the box for “Commissions.”

2. Are you or anyone at your firm registered with a broker-dealer or licensed to sell insurance on commission?

A broker registration or commissioned insurance license allows an advisor to earn compensation from the products they sell. Any broker-dealer or insurance agency that authorizes financial advisors presents a conflict of interest within their firm.

3. Do you or your firm recieve revenue sharing, soft dollars, or other payments from product companies?

Commissions are only one form of third-party compensation. Revenue sharing, soft-dollar benefits, and referral payments can also create financial incentives.

4. Will you put your fiduciary commitment in writing, and does it apply at all times?

Registered investment advisers are legally obligated to serve your best interests
exclusively. Because certain advisors switch between fiduciary duties and standard brokerage
practices depending on the account, ensure their written obligation encompasses all advisory
guidance. Finally, verify this obligation within your client agreement and cross-reference it
against their firm’s Form CRS.

5. Are you a NAPFA-Registered Financial Advisor?

Membership in the National Association of Personal Financial Advisors (NAPFA) is restricted exclusively to fee-only advisors, requiring a thorough review of each their firm’s Form ADV alongside an advisor’s executed Fiduciary Oath. You can confirm the advisor’s membership in NAPFA’s Find an Advisor directory.

How Zhang Financial Answers These Questions

Zhang Financial is a fee-only registered investment adviser compensated solely by our clients. As disclosed in our Form ADV, we do not receive compensation from selling proprietary products, engaging in principal trading, third-party payments, revenue sharing, commissions, kickbacks, or soft dollars. Charles Zhang, Lynn Chen-Zhang, and Alex Zhang are members of NAPFA, which admits only fee-only advisors. Zhang Financial was also ranked #7 on Forbes’ 2025 Top RIA Firms, the highest-ranked Michigan-based RIA on the list.

Released 10/1/25 based on a 12-month period ending 3/31/25. Rankings developed by SHOOK Research. Zhang Financial paid no fee to be considered for or included in the ranking. The firm pays Forbes a licensing fee to use the ranking and logo. See zhangfinancial.com/disclosure for full ranking criteria and methodology.

Checklist: Before You hire an Advisor

• Ask all five questions and note the advisor’s answers.
• Look up the advisor’s firm on IAPD and compare the firm’s Form ADV with the answers you received from the advisor.
• If the advisor identifies as Fee-Only, search for their NAPFA membership in the Find an Advisor directory. While NAPFA membership is not a requirement to be a fee-only advisor, it is a reliable way when determining if an advisor is fee-only.
• Receive the fiduciary commitment in writing before signing an advisory agreement.

Frequently Asked Questions

What if an advisor’s answers don’t match their firm’s Form ADV?
Ask the advisor to explain the difference. Form ADV is a regulatory filing their firm must keep current, so it is the more reliable record of how the advisor and their firm are paid.

Is Form ADV free to access?
Yes. Form ADV is a public record, and anyone can search a firm by name or CRD number at adviserinfo.sec.gov.

Does a fee-only advisor ever earn commissions?
No. Under NAPFA’s definition, neither a fee-only advisor nor any related party may receive compensation contingent on the purchase or sale of a financial product.

Do I need to ask these questions if an advisor says they are a fiduciary?
Yes. Being a fiduciary and being fee-only are separate matters, and a fee-based advisor still has a fiduciary duty to clients, even when it earns other forms of compensation.

At Zhang Financial, we believe informed clients are better positioned to evaluate their financial options and the professionals who advise them. For additional educational content and financial planning insights, visit zhangfinancial.com.