Fee-Only Financial Advisor in Boston

What "Fee-Only" Actually Means (and Why Most Advisors Aren't)

The financial advisory industry loves confusing terminology. "Fee-based," "fee-aware," "fee-transparent" — these are marketing terms, not legal standards. The only designation that matters is fee-only.

A fee-only financial advisor earns compensation exclusively from client fees — typically a percentage of assets under management. They do not earn commissions from selling insurance products, mutual funds, annuities, or any other financial product. Period.

This isn't a philosophical distinction. It's a structural elimination of conflicts of interest. When your advisor earns a $30,000 commission for recommending a variable annuity you don't need, whose interest are they serving?

According to NAPFA, fewer than 10% of financial advisors in the United States are truly fee-only. The rest operate under some variation of the commission-based or hybrid model — even if their marketing says otherwise.

The Real Cost of Conflicted Advice

Let's put real numbers on this. The average advisory fee at a major wirehouse (Merrill Lynch, Morgan Stanley, UBS, Wells Fargo Advisors) is 1.0%–1.25% of assets under management. But that's just the advisory fee. Layer on top:

• Fund expense ratios: 0.50%–0.80% for actively managed funds commonly recommended by wirehouses
• 12b-1 fees: 0.25% embedded in certain share classes (you never see this directly)
• Transaction costs: $50–$100 per trade at some firms
• Account fees: Annual custody or maintenance charges

Total all-in cost at a typical wirehouse: 1.5%–2.0% per year.

At Radius, our fee is 0.75%. We use low-cost index funds and ETFs averaging 0.03%–0.10% in expense ratios. No 12b-1 fees. No transaction costs at Schwab. Your total all-in cost: approximately 0.80%–0.85%.

On a $1 million portfolio over 20 years, that difference compounds to $250,000–$400,000+ more in your pocket. That's not a rounding error — it's a retirement home, a legacy for your grandchildren, or a decade of financial security.

Fiduciary Duty: The Legal Standard That Protects You

Fee-only advisors who are Registered Investment Advisors (RIAs) are held to a fiduciary standard — meaning they are legally required to act in your best interest at all times. This is the highest standard of care in the financial industry.

Brokers at wirehouses, by contrast, are held to a suitability standard (recently upgraded to Regulation Best Interest, or "Reg BI"). The difference? A suitable recommendation just has to be "not inappropriate" — it doesn't have to be the best option for you. It just can't be outright harmful.

Think of it this way: a doctor operating under a suitability standard could prescribe an expensive brand-name drug that pays them a kickback, as long as the drug technically treats your condition. A fiduciary doctor would prescribe the most effective treatment at the best value — regardless of what pays them more.

At Radius, fiduciary duty isn't a marketing bullet point. It's the legal foundation of every recommendation we make.

Why Radius Wealth Management

Radius was founded specifically to offer institutional-quality financial planning without the conflicts inherent in the wirehouse model. Here's what that looks like in practice:

• Fee-only compensation: 0.75% of assets under management. No commissions, no product sales, no hidden revenue streams.
• Independent: We're not owned by a bank, insurance company, or brokerage. No one tells us what to recommend.
• Schwab custody: Your assets are held at Charles Schwab — one of the largest, most regulated custodians in the world. We never touch your money; we only direct its investment.
• Tax-smart planning: Roth conversions, tax-loss harvesting, IRMAA management, charitable giving strategies — all optimized for your specific tax situation.
• Real technology: Our AI financial planner gives you an institutional-quality analysis for free, before you ever commit to a relationship.

We believe the best way to earn your trust is to demonstrate our value before you pay us anything. That's why our AI planner is free — try it, see the quality of analysis, and decide for yourself.