The experts say that, stereotypically, a fee-only financial planner is a better option than one who earns commissions on what he or she sells you. Why is this sometimes true?

What will be an ideal response?

Answer: Because of the agency relationship and self-interested behavior, a commission-earning financial planner may be more interested in the commissions he or she will earn versus what is best for your personal needs. There is the potential for the planner to recommend financial products that pay higher commissions, when these products may not be best suited to your individual needs, or when there may be less expensive options available. A fee-only planner has no such incentive, since the fees are not contingent on your financial decisions. The fee-only planner knows that he or she must do a good job or you will not continue to utilize their services or refer new business to them.