It was the summer of 2003. The dawn of my career, still finding my footing.

I sat across a table from a maintenance worker at a school district in eastern North Carolina.

He already had a 403b plan through his employer — a low-cost solution that, if I’m being honest with myself, was probably the better option for him.

But I was there representing a different product, one I had been trained on, one that had genuine benefits I could point to, and one that was — in the language of the industry at the time — “suitable” for his situation.

Suitable.

That was the standard I was operating under.

I was hesitant.

I knew what I knew. But each sale mattered back then, and I signed him up and helped him get set up as best as I could. I did everything right within the rules of the world I was operating in.

I still think about that man.

I can still see the building.

I can still see the table where we signed the contract.

That memory is a big part of why Portus exists, and why we operate as a fee-only fiduciary firm. Not because what I did was wrong by the standards of that industry.

But because I always wanted to do better than “suitable.”

I wanted to do right.

So What Is a Fee-Only Financial Advisor, Exactly?

The financial advisory industry has a compensation problem that most clients don’t fully understand until it affects them directly. There are three primary models, and the differences between them matter more than most people realize.

• Commission-based advisors earn their income by selling financial products — annuities, mutual funds, insurance policies, investment products. The more they sell, and the more expensive the products they sell, the more they earn. This creates an inherent conflict of interest: the advisor’s income is tied to what they sell you, not to whether it’s the best option for your situation. The legal standard they operate under is “suitability” — the product just has to be appropriate for your general situation, not necessarily the best choice available.
• Fee-based advisors charge fees for their services, but also earn commissions on products they sell. This hybrid model is sometimes presented as a middle ground, but the conflict of interest doesn’t disappear just because it’s partial. When an advisor earns more by recommending one product over another, that incentive is always present in the background of the conversation, whether they’re aware of it or not.
• Fee-only advisors are compensated exclusively by their clients. No commissions. No product sales. No referral fees. The only way we get paid is directly by the people we serve. That single structural difference eliminates the most significant category of conflict of interest in the advisory relationship.

Fee-only advisors are also held to a fiduciary standard — a legal obligation to act in your best interest at all times, not just when it’s convenient or when no commission is on the table. That’s a meaningfully higher bar than suitability, and it changes the nature of every conversation we have with a client.

Why the Distinction Matters More for Business Owners

For a business owner generating between $5M and $50M in revenue, the stakes of every financial decision are significantly higher than for the average investor. And the decisions that surround a business exit — how to structure the deal, how to invest the proceeds, how to handle the tax implications, how to position assets for the next chapter of your life — are among the most consequential financial decisions you will ever make.

In that environment, the compensation structure of your advisor isn’t an abstract ethical concern. It’s a practical one.

Consider what happens when a commission-based or fee-based advisor is helping you evaluate post-sale investment options. If certain annuities or investment products generate higher commissions than others, that incentive is present in the recommendation whether or not you can see it. You may never know that a lower-cost option existed. You may never know that the product you ended up in was “suitable” but not optimal.

As a fee-only advisor, I don’t have that problem. My only financial interest is in giving you the best advice I can, because that’s the only way I earn your trust and your continued business. There are no products to sell you. There are no commissions influencing what I recommend. When I tell you a particular investment strategy or deal structure is the right one for your situation, the only things behind that recommendation is my expertise and my obligation to act in your interest.

I’ll also be direct about something the fee-only model doesn’t eliminate: bias can exist in any business model. I’m aware of where my perspectives and preferences might influence my thinking, and I believe in naming those openly with clients when they’re relevant. The fiduciary standard isn’t a guarantee of perfection. It’s a commitment to transparency and to putting your interests ahead of mine, and it’s a commitment I take seriously.

What Fee-Only Looks Like in Practice

At Portus, fee-only isn’t just a compensation model. It’s the foundation of how we approach every client relationship.

When we’re working through your business exit strategy, we’re evaluating deal structures based entirely on what makes sense for your financial situation, your tax position, and the life you want to live after the sale. When we’re developing your business financial plan, we’re building it around your goals, not around products that generate revenue for us.

When we talk about succession planning, risk management, or retirement plan strategy, the recommendations come from one place: what we genuinely believe is in your best interest, period.

That’s what fee-only means in practice. Not just a line on a website. A structural commitment that changes the nature of the advice you receive.

How to Verify an Advisor’s Fee-Only Status

Unfortunately, the term “fee-only” isn’t always used accurately in the industry. Some advisors describe themselves as fee-only when they are actually fee-based, meaning they still earn commissions on certain products.

Here’s how to verify it. The National Association of Personal Financial Advisors, known as NAPFA, maintains a searchable directory of advisors who have met its strict fee-only standards and signed a fiduciary oath. NAPFA membership requires that an advisor receive no commissions or compensation from any source other than their clients. It’s the most reliable third-party verification of true fee-only status available.

You can also ask any advisor directly: do you or your firm receive any compensation from third parties, including commissions, referral fees, revenue sharing arrangements of any kind? A genuine fee-only advisor will answer that question with an unambiguous no.

The Question I Wish Someone Had Asked Me in 2003

I’ve thought a lot over the years about that maintenance worker in eastern North Carolina. About whether the product I put him in served him well. About whether he would have been better off staying where he was.

I did everything within the rules. But the rules weren’t built around his best interest. They were built around “suitable.” And suitable has never felt like enough to me.

The question I wish someone had asked me back then, the question I’d encourage every business owner to ask any advisor they’re considering, is simple:

Are you a fee-only fiduciary? And can you show me, in writing, exactly how you get paid?

The answer to that question will tell you more about the advice you’ll receive than almost anything else.

Ready to Have That Conversation?

If you’re a business owner who wants to work with an advisor whose only financial interest is in giving you the best advice possible, we welcome a conversation.

Portus Wealth Advisors is a fee-only fiduciary firm serving business owners throughout Charlotte, the Southeast, and the Eastern Seaboard. We work with owners generating between $5M and $50M in revenue who are making serious financial decisions and want objective counsel to guide them.

You can also download our free e-book below. Charting Your Exit features in-depth interviews with M&A specialists, attorneys, and successful founders who have navigated the business transition process.

Or explore our Founder’s Final Act framework to get a sense of how we think about the full arc of a business owner’s transition — from building value to closing the deal to defining what comes next.

William Bissett, CFP, CEPA is the founder of Portus Wealth Advisors, a Charlotte, NC-based wealth management firm serving business owners throughout the Southeast and eastern seaboard. Portus specializes in integrated financial planning for founders, executives, and business owners navigating growth, transition, and legacy.