William Allan Wealth Management · How We Are Paid
Fee-Only Financial Advisors, Paid by the Client
A fee-only financial advisor is paid by the clients they serve, not by commissions or third-party payments for recommending particular products. William Allan is a fee-only, SEC-registered investment adviser, and this page explains what that does and does not tell you.
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How an advisor gets paid shapes the incentives around every recommendation. Fee-only is one of the clearest compensation models to verify, because the firm's filings have to say how it is paid. It is not the same as fee-based, it is not automatically cheaper, and it does not remove every conflict. Here is how to read the label and how to check it.
What Fee-Only Means
The Client Is the Only Payer
Compensation comes from the people receiving the advice. A fee-only adviser does not earn commissions, sales loads, or payments from product sponsors tied to what it recommends.
How Fee-Only Advisors Charge
Common structures are a percentage of the assets being managed, an hourly rate, or a flat or retainer fee for planning. Each one creates different incentives, and many firms use more than one.
Advisory Fees Are Not the Only Cost
Fund expenses, transaction charges, and custodial or other investment costs are separate from what the adviser is paid. A complete comparison looks at both.
Fee-Only vs. Fee-Based vs. Commission
Fee-Only
Paid only through client fees. The adviser has no commission income riding on whether you buy a particular fund, annuity, or insurance policy.
Fee-Based
Charges advisory fees and can also earn commissions on products it sells, often because the professional is registered both as an investment adviser and as a broker. The similar name causes real confusion.
Commission-Based
Paid when a transaction happens or a product is sold. That can suit someone who wants a single purchase rather than ongoing advice, but the pay is linked to the sale.
What Fee-Only Does Not Settle
It Is Not Conflict-Free
An adviser paid a percentage of assets earns more when more assets stay under management. That touches advice about paying off a mortgage, making a large gift, or moving money elsewhere. Registered advisers must disclose conflicts like this one.
It Is Not Automatically Cheaper
On a large portfolio, an annual asset-based fee can exceed what a one-time commission would have cost. Compare total cost against the scope of work, not the label.
Fiduciary Is a Separate Question
Fee-only describes how the adviser is paid. Fiduciary describes the standard of conduct: a duty of care and loyalty to the client. Registered investment advisers owe that duty to their advisory clients; confirm both in writing.
How to Verify an Advisor Is Fee-Only
- Read the firm's Form CRS, which answers "What fees will I pay?" and "How do your financial professionals make money?"
- Read Form ADV Part 2A, Item 5, which describes fees and whether anyone at the firm accepts compensation for selling securities or other investment products
- Search the firm and the individual on the SEC's Investment Adviser Public Disclosure site and on FINRA BrokerCheck; a broker registration means commissions are possible
- Ask whether the adviser holds an insurance license and earns commissions on insurance or annuity sales
- Ask about revenue sharing, 12b-1 fees, and any payments from custodians or fund companies
- Ask which affiliated businesses provide services to you and how each one bills
- Ask for the total annual cost in dollars: advisory fee plus fund expenses, transaction charges, and separate service fees
How William Allan Is Paid
Advisory Fees From Clients
William Allan is compensated through asset-based and hourly advisory fees paid by clients, not by commissions or third parties for recommending particular products. The current fee schedule is in our Form ADV and Form CRS.
The Conflict We Disclose
Because part of our compensation is asset-based, moving assets to William Allan management can increase what the firm is paid. We describe that conflict in our filings rather than claim a structure without one.
Minimums, Stated Plainly
There is generally no account minimum, but Asset Management Services carry a minimum annual fee. Those are different things, and we will discuss services, costs, and fit before you decide.
CPAs on the Same Team
Tax planning and preparation is done in-house by CPAs and engaged and billed separately through Crawshaw CPAs, our affiliated CPA practice. Each engagement has its own agreement, so the scope and fees for each stay clear.
A Record You Can Check
William Allan is registered with the SEC as an investment adviser. Our Form ADV, Form CRS, and registration history are public under CRD 133147.
Frequently Asked Questions
What is a fee-only financial advisor?
A fee-only financial advisor is compensated only by the clients they serve, through fees such as a percentage of assets managed, an hourly rate, or a flat planning fee. They do not earn commissions or third-party payments for recommending particular investment or insurance products.
What is the difference between fee-only and fee-based?
A fee-only advisor is paid only through client fees. A fee-based advisor charges advisory fees and can also earn commissions on products it sells, often because the professional is also registered as a broker. The names are similar, so check the firm's Form CRS and Form ADV rather than relying on the label.
Are fee-only advisors fiduciaries?
Fee-only and fiduciary are separate ideas. Fee-only describes how an advisor is paid; fiduciary describes the standard of conduct. Most fee-only advisors are registered investment advisers, which owe their advisory clients a fiduciary duty, but you should confirm both points in writing.
Is a fee-only advisor cheaper?
Not necessarily. An asset-based fee is charged every year, so on a large portfolio it can cost more than a one-time commission. Some commission products also carry ongoing internal expenses. Compare the total annual cost in dollars against the work the advisor will actually do.
Does fee-only mean there are no conflicts of interest?
No. An advisor paid a percentage of assets has an interest in keeping assets under management, which can touch advice about paying down debt, making gifts, or moving money. A registered adviser is required to disclose material conflicts like this one, and Form ADV is where to read them.
Is William Allan a fee-only financial advisor?
Yes. William Allan is an SEC-registered investment adviser (CRD 133147) compensated through asset-based and hourly advisory fees paid by clients, not by commissions or third parties for recommending particular products. Tax services are engaged and billed separately through affiliated Crawshaw CPAs.
Do you work with clients outside California and Colorado?
Our office is in Long Beach, and we serve Colorado clients remotely by phone and video. We will confirm at the start of the conversation that we are able to serve clients in your state.
Ask us how we are paid. We will show you where it is written down.
Start with a free, thirty-minute intake call with Ian Bearss. He learns about your situation and questions and helps identify the appropriate next step with our advisory team. The first call does not include financial advice.