Narstar
How to Find a Fee-Only Financial Advisor
To find a fee-only financial advisor, start with the SEC's free public database at adviserinfo.sec.gov (opens in new tab). Every registered investment adviser is listed there, including their fee structure, registration status, and disciplinary history. No directory charges for placement. No ad results. This article covers how to search it, what to verify, and the questions worth asking before you hire anyone. Investing involves risk, including the possible loss of principal.
Start With the Term
Fee-only and fee-based sound similar. They are not the same thing.
A fee-only financial advisor earns revenue exclusively from client advisory fees. No commissions, no product sales, no third-party payments of any kind. If money flows to the advisor from any source other than the client, the advisor is not fee-only.
Fee-based sounds almost identical but means something different. A fee-based advisor charges a client fee and can also earn commissions when selling certain products. The two words describe two different compensation structures, and a standard Google search for "financial advisor" returns both without distinguishing them.
Why it matters: an advisor who earns commissions has a financial reason to recommend some products over others, regardless of which one is better for you. The conflict does not make the recommendation wrong, but it is a real conflict. A fee-only structure removes that particular source of friction. It does not remove every conflict, but it removes the most common ones. A registered investment adviser owes a fiduciary duty to act in your interest and to disclose any remaining conflicts in writing.
Where to Search
Three sources worth starting with, ranked by reliability.
NAPFA directory. The National Association of Personal Financial Advisors admits only fee-only members. Searching at napfa.org/find-an-advisor (opens in new tab) filters out fee-based advisors by design. You can search by zip code or state. Not every fee-only advisor is a NAPFA member, but every advisor listed there has confirmed their fee-only status.
SEC's Investment Adviser Public Disclosure. The IAPD at adviserinfo.sec.gov (opens in new tab) is the public database for all registered investment advisers in the United States. You can search by name, firm, or CRD number and filter results by state. This is where you verify credentials, not where you browse for recommendations.
Your state securities regulator. Advisers managing less than $110 million typically register with their state, not the SEC. Most states have a searchable database through NASAA (nasaa.org (opens in new tab)) or through the state securities division directly. A state-registered adviser is not a lesser option. It simply means the firm is smaller and regulated at the state level.
General Google searches and advisor-matching services can supplement these sources but are not a substitute for the public records above. Marketing language cannot be verified. Regulatory records can.
Portfolio management, $100 minimum, no commissions
Want someone to manage your investments?
Narstar charges 0.60% to 1.60%/yr. Three model portfolios for dividend income, long-term growth, or speculative goals. No commissions, no product sales. Investing involves risk, including the possible loss of principal.
What to Verify on IARD
Four things. Each one takes less than two minutes.
CRD number. Every registered investment adviser has a Central Registration Depository number. Any advisor who is reluctant to give you their CRD number is a red flag. Enter it at adviserinfo.sec.gov (opens in new tab) and confirm the record matches what you were told.
State registration. Confirm the adviser is registered in the state where you live. An adviser who is not registered in your state cannot legally provide investment advice to you, with limited exceptions. The IARD record shows every state where the adviser is registered.
Form ADV Part 2A (opens in new tab). This is the adviser's regulatory brochure, filed with the SEC or state regulator and available in full on IARD. It describes how the firm is paid, discloses any broker-dealer affiliations, and covers any referral compensation arrangements. Look for the fees and compensation section. If it mentions commissions or third-party payments, the firm is not fee-only.
Disclosure events. The IARD record shows any regulatory actions, customer complaints, or legal proceedings on the adviser's record. For individual representatives, FINRA BrokerCheck (opens in new tab) provides a similar report including employment history and licenses. One old complaint does not disqualify anyone. A pattern of complaints, or anything involving fraud or misappropriation, is a different matter.
Questions to Ask
Ask these directly. The answers should be short and verifiable.
Do you receive any compensation other than my advisory fee? A fee-only adviser's answer is a flat no. Any qualification ("sometimes," "only on certain products," "through our affiliated entity") means the adviser is not fee-only.
What is your CRD number? This lets you pull the public record independently. If the adviser does not know it or does not provide it, that is a problem.
Are you registered as a broker-dealer or affiliated with one? Fee-only advisers are registered investment advisers only. A dual registration (both RIA and broker-dealer) means the adviser can switch between fiduciary duty and the lower best-interest standard depending on the transaction.
What is your account minimum? Many fee-only advisers require $50,000 or more to open an account. This is not wrong, but it is worth asking before spending time on a call.
How are fees calculated and when are they billed? A percentage of assets under management, billed quarterly, is the most common structure for portfolio management. Hourly and flat-fee structures exist for planning-only engagements. All of this should be in writing in the advisory agreement.
Narstar is fee-only and state-registered in Utah (CRD #337496) and conditionally registered in Texas. We manage three model portfolios starting at a $100 minimum. No commissions, no exit fees, no product sales. If you want to verify any of this, the public records are the right place to start. If you want to talk, the contact form below is the fastest way to reach us. Investing involves risk, including the possible loss of principal.
Questions About Finding a Fee-Only Advisor
If you want to verify Narstar's registration, the links are in the footer. If you have a question about the process or want to know whether we are the right fit, send it below. We reply within two business days.
- Reply within two business days.
- [email protected]
- (801) 251-6844
- Sandy, Utah