Why Every Woman Needs a Fee-Only Financial Advisor

Not all financial advisors are built the same — and most women don't know the difference until it costs them.

In this episode, Hazel Secco, CFP®, CDFA® breaks down what "fee-only" actually means, why it matters more than most people realize, and how the way your advisor gets paid directly affects the advice you receive. From hidden commissions to conflicts of interest, Hazel explains what to watch for and why the fee-only model exists to keep your advisor on your side of the table.

If you've ever wondered whether your financial advisor is truly working for you — or for their own bottom line — this is the episode to listen to.

In this episode, you'll learn: - What "fee-only" means and how it differs from "fee-based" (they're not the same) - Why the fiduciary standard matters for your financial plan - How commission-based compensation can create conflicts you'd never see - What to ask a financial advisor before you hire one

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About Hazel Secco, CFP®, CDFA® 

Hazel is the founder of Align Financial Solutions. As a fee-only, fiduciary advisor, she specializes in helping independent women navigate career transitions, equity compensation, and building toward a Work Optional life.

Disclaimer: All content in this podcast is for educational and informational purposes only and does not constitute individual investment, legal, or tax advice. Investing involves risk. Always consult with a qualified professional regarding your specific situation.

Transcript

The Story of Melissa

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Three years ago, a woman called Melissa said across her mean tears. She just discovered that the financial advisor she trusted for over a decade had sold her multiple expensive investment products she didn't need. Products that had generated potentially thousands and commissions for him while locking up her money in high fee, low liquidity vehicles. I feel so stupid, she told me. I thought he was looking out for me. I never questioned his recommendations because he seemed so confident, so professional. I just trusted him. Her story broke my heart, but it wasn't surprising. Before founding my own fee only practice, I witnessed countless situations like Melissa's. Smart, capable women being sold financial products that served the advisors' bottom line, more than their financial futures. That's the moment I knew I couldn't be part of that system anymore. I couldn't keep watching women's financial independence be compromised by conflicts of interest and hidden agendas. Today, we're diving into why choosing a fee-only financial advisor might be the most important financial decision you'll ever make, especially as an independent woman designing a work optional life. Hi, and welcome to her Honest Money Talk, where we believe in living wealthy and living well for independent women. I'm your host, Hazel Secko, a certified financial planner, mom of two little ones, and the founder of Aligned Financial Solutions. If you're new here, this show is for decision-making women who've worked hard, climbed the ladder, and still wonder, is my money working as hard as I do? And if that's you, you're in the right place. So in our previous episodes, this season, we've explored this fundamentals of creating a work optional life. What it means, how to calculate your enough number, and how to align your money decisions with your deepest values. Today, we're focusing on something equally crucial: finding the right financial partner for your journey. Because here's what I've learned after years in this industry. Who you choose to guide you matters just as much as what you invest in or how much you save. When it comes to financial advisors, the fee-only model creates a partnership built on transparency, trust, and true alignment with your goals. And for women building financial independence, this alignment isn't just preferable, it's essential. Let me share how I came to this realization in my own career. When I first entered the financial services industry, I worked at a traditional big firm where advisors earned income through a combination of client fees and product commissions. From the outside, it seemed like a standard business model, which was. Everyone was doing it that way. But as I set in on client meetings and watched how recommendations were made, I noticed something that bothered me. The advisors would recommend certain products, often the ones with higher commissions, and they always had, you know, reasonable justifications for why these were the right choices. But something about it just didn't feel exactly right to me. It wasn't that these advisors were being dishonest, most truly believed in their recommendations. But I started wondering, is it even possible for someone to make truly unbiased, objective recommendations when their paycheck depends on which products they sell? Even with the best intentions, could that influence be operating in the background? Here's what many people don't realize about the financial industry. Most advisors operate under rules that allow them to switch between two different roles. In one role, they're a fiduciary advisor who must legally put your interest first, the client's interests first. In the other role, they're essentially a salesperson who can recommend products that pay them commissions. The problem is that clients rarely know which role their advisor is in at any given moment. The same person who gives you fiduciary retirement planning advice might then switch hats and sell you a commission-based insurance product. And the transition can be so smooth you'd never notice it happened. This is what makes the fee-only approach so different. Fee-only advisors have chosen to eliminate that role switching entirely. We're fiduciaries 100% of the time because we never accept commissions from product sales. Our only source of compensation is the transparent fee we charge our clients. That's what first drew me to the fee-only model. I started researching advisors who were compensated solely by their clients, not by commissions or product sales. And what I found was a community of people who had made the same decision to remove as many conflicts of interests as possible and to put their clients' interests first. Always. But the transition wasn't exactly easy, not just financially, but also emotionally. Moving to a fee-only practice for me meant walking away from my existing client base. And some clients chose to come with me, but for others, my new model wasn't exactly the right fit. So the transition was hard because many of my clients felt like my family. And financially, it was challenging too because I had to take on new expenses while also giving up commissions from products that, you know, some clients genuinely needed. It meant rebuilding my entire business model based purely on the value I provide, not on what I sell. And honestly, that was scary. I remember thinking, like, who am I to believe that people will trust me more than a big firm with fancy brochures and brand recognition? But I also knew it was the right thing to do. And for the first time, I felt like I could sleep at night, knowing that every recommendation I made was truly in my clients' best interest. 100% of the time, even subconsciously, I could finally show up fully as myself, honest, authentic, and aligned. And that allowed me to give my clients the very best version of me, the version that could empower them, guide them, and genuinely help them build the life they deserve. Because I was confident that I was the one who chose to eliminate as many conflicts as possible so that I can serve them the best. Now that I've shared why I chose this path, let's talk about what it is, what fee only advice actually looks like in practice and the different ways it can work. So fee only advisors typically structure their compensation in one of three ways, or a combination of any of those. So, one, a percentage of assets under management, two, a flat fee for specific services, or three, an hourly rate for consultations. So with the percentage model, they often call it also AUM model, which is the most, one of the most common ways that uh fee-only advisors get compensated. An advisor typically charges between half a percent to one and a half percent of investment they manage each year. So, for example, if they're managing a million dollars for you, that means you'd pay somewhere between$5,000 and$15,000 annually for their services. In future episodes, we'll also talk about when this type of fee is worth paying and who can benefit most from having an experienced, trusted sounding board by their side as they build their financial future. With a flat fee model, you might pay a set amount, usually between$3,000 and even$20,000 a year, depending on the complexity of the situation. Or, you know, however the advisor structures the flat fee model. For comprehensive financial planning, regardless of your asset level, this approach can be especially helpful for clients who have significant wealth in assets. Their advisor doesn't directly manage, like, you know, employer retirement plans or real estate, etc. With the hourly model, you simply pay for the time you use, often between$200 and$500 per hour. It's ideal for clients who want help with specific projects or financial questions rather than ongoing management. What all these models have in common is transparency. You know exactly what you're paying and exactly what you're getting in return. There are no surprise fees or hidden agendas trying to sell you a particular product for quota meeting. Many of my clients tell me that this clarity, knowing that there's no hidden commissions influencing recommendations, gives them real confidence in the financial decisions we make together. They love that our interests are fully aligned towards the same goal, growing and protecting their financial future. Organizations like the National Association of Personal Financial Advisors, or NATFA, represent fee-only advisors like me who are committed to this transparent approach. We believe that removing commissions altogether from the equation is the clearest way to demonstrate our dedication to putting clients first. Now, you might be wondering why I emphasize this fee-only distinction, particularly for women. As we've discussed in previous episodes, women face unique financial challenges from longer lifespans to caregiving responsibilities to persistent wage gaps. These realities mean we need financial guidance that truly puts our interests first with no hidden agendas. But there's something else I haven't mentioned yet. The way women are often represented in the financial industry itself. So women have been historically underserved and frequently patronized. So many of you have stories about advisors who dismissed your questions, who spoke primarily to your male partners in meetings or who pushed simple solutions because they assumed that you couldn't understand complex ones. Trust me, I understand this firsthand. I've had to fight to be heard as a woman in the financial industry, even as a professional. I've witnessed countless instances where women were talked at rather than listened to, especially in professional settings. In this context, finding an advisor who truly puts your interests first isn't just about avoiding conflict of interest. It's about finding a partner who respects your autonomy, values your questions, and empowers rather than directs you. The fee-only model doesn't guarantee this kind of respect, but it creates conditions where it's more likely to flourish. When an advisor's success is directly tied to your satisfaction, not to selling your product, the relationship fundamentally changes. It becomes a partnership rather than a transaction. There is also an important cultural and psychological dimension to consider here. Many of us, as women, have been socialized to avoid discussions about money. We're taught that it's impolite to ask direct questions about fees or compensation. We're conditioned to be accommodating rather than assertive when it comes to financial matters. This socialization can make it particularly difficult for us to navigate this, you know, relationships with financial advisors who may not be forthcoming about how they're compensated or what conflict might exist. I see this with clients all the time, absolutely brilliant and successful women who feel uncomfortable asking their advisors pointed questions about fees, commissions, or potential conflict. Women who sense something isn't right but doubt their own instincts because we've been taught to trust authority figures, particularly in domains traditionally dominated by men. The fee-only model removes this burden for you. When compensation is straightforward and clear, when you know exactly what you're paying and what you're getting in return, it creates space for an honest, collaborative relationship. You don't have to wonder if a recommendation is truly in your best interest or if it's motivated by hidden incentives. This clarity is absolutely valuable for you as you build financial independence because independence requires complete information. You can't make truly autonomous decisions if you don't have all the fact. And you can't build confidence in your financial choices if you're always second-guessing the motives behind the advice you're receiving. So, how do you find a fee-only advisor who's right for you? Let me share some practical steps. First, use resources specifically designed to connect consumers with fee-only advisors. Organizations like the National Association of Personal Financial Advisors, NAFA, the XY Planning Network, or the fee-only network has a list of all of the advisors who's committed to this mission. Second, be direct in your initial conversations. Ask potential advisors, are you fee only or can you explain exactly how you're compensated? A good advisor will appreciate this question and answer it clearly and completely. Third, verify that they're fiduciaries 100% of the time, not just for certain accounts or services. The word fiduciary has been watered down in recent years, so specificity matters here. Fourth, ask about their experience working with women in situations similar to yours. Do they understand the unique challenges women face? Can they provide examples of how they've helped women build financial independence? And fifth, consider whether they offer comprehensive financial planning or just investment management. A true financial partner should help you with all aspects of your financial life, not just your investment portfolio. And finally, trust your instincts. The right advisor should make you feel heard, respected, and empowered. You should leave conversations feeling more confident, not more confused. And that brings us to your freedom step for this episode. Schedule a fee clarity call with your current financial advisor or with a potential new one if you, you know, don't already have one. In this call, ask these five specific questions. Are you a fee-only advisor? And can you explain your exact fee structure? Are you a fiduciary 100% of the time or some account and not the others? Do you ever receive compensation from any source other than your clients? Can you walk me through your approach to financial planning for women specifically? Finally, how do you measure success in our relationship? The answers to these questions will tell you a lot about whether this advisor is truly aligned with your best interest. If your current advisor can't give clear direct answers, or if you feel uncomfortable even asking these questions, that's valuable information. Remember, this isn't just about technical qualifications, it's about finding a partner who empowers you to make confident decisions aligned with your values and goals. As we wrap up today, I want to leave you with this thought. The relationship you have with your financial advisor can be one of the most significant relationships in your entire life. This person influences decisions that affect your security, your options, and your future. You deserve a partner who is 100% on your side with no hidden agendas. You deserve transparency, respect, and guidance tailored to your unique situation as a woman building financial independence. The Feolone model doesn't guarantee you'll find this ideal partner, of course. There are certainly Feomi advisors who aren't a good fit for everyone, but it removes one of the biggest barriers to a truly collaborative relationship, the potential for conflicting interest. When your advisor succeeds, only when you succeed, not when you buy certain product or maintain certain accounts, the foundation for trust is much stronger. And trust is fundamental, essential for any meaningful financial partnership. In our next episode, we'll dig into another big piece of creating a work optional life, your money mindset. Because the truth is, financial independence isn't just about how much you have, it's about how you think about it. We'll talk about how to build what you want the way you want it. Until then, I'm Hazel Secko, and this is her Anis Money Talk. Keep living wealthy and living well. Talk to you soon. Bye.