# Financial advisor glossary

> Plain-language definitions of the terms used when choosing a financial advisor, with how to check each for a specific advisor.

Canonical page: https://find.wellspent.co/glossary/

- **[Fee-only financial advisor](https://find.wellspent.co/glossary/fee-only.md):** A fee-only financial advisor is paid only by their clients, never by commissions, referral fees, or other payments tied to selling financial products.
- **[Fee-based financial advisor](https://find.wellspent.co/glossary/fee-based.md):** A fee-based financial advisor charges client fees and can also earn commissions on products they sell, so fee-based is not the same as fee-only.
- **[Commission-based advisor](https://find.wellspent.co/glossary/commission-based.md):** A commission-based advisor is paid by the companies whose financial products they sell, such as insurance, annuities, or mutual funds, rather than by the client directly.
- **[Fiduciary](https://find.wellspent.co/glossary/fiduciary.md):** A fiduciary financial advisor is legally obligated to act in the client's best interest, putting the client's interests ahead of their own.
- **[Assets under management (AUM) fee](https://find.wellspent.co/glossary/aum-fee.md):** An AUM fee is an annual charge equal to a percentage of the investments an advisor manages for you, usually billed quarterly from the account.
- **[Flat-fee financial planning](https://find.wellspent.co/glossary/flat-fee.md):** Flat-fee financial planning means paying a fixed price, per project or per year, that does not depend on the size of your investments.
- **[Hourly financial planning](https://find.wellspent.co/glossary/hourly.md):** Hourly financial planning means paying an advisor for the time they spend on your questions, with no ongoing commitment.
- **[Subscription financial planning](https://find.wellspent.co/glossary/subscription.md):** Subscription financial planning is ongoing advice for a recurring monthly or annual fee, regardless of how much you have invested.
- **[Advice-only financial planning](https://find.wellspent.co/glossary/advice-only.md):** An advice-only financial planner gives planning advice for a fee but does not manage or hold your investments.
- **[Registered investment adviser (RIA)](https://find.wellspent.co/glossary/ria.md):** A registered investment adviser (RIA) is a firm registered with the SEC or a state securities regulator to give investment advice for compensation.
- **[Investment adviser representative (IAR)](https://find.wellspent.co/glossary/iar.md):** An investment adviser representative (IAR) is an individual registered to give investment advice on behalf of a registered investment adviser firm.
- **[CRD number](https://find.wellspent.co/glossary/crd.md):** A CRD number is the unique ID that the Central Registration Depository assigns to every registered financial professional and firm in the US.
- **[Form ADV](https://find.wellspent.co/glossary/form-adv.md):** Form ADV is the registration filing every investment adviser firm submits to regulators; its Part 2A brochure discloses the firm's fees, services, and conflicts of interest in plain English.
- **[CERTIFIED FINANCIAL PLANNER (CFP) certification](https://find.wellspent.co/glossary/cfp.md):** The CFP certification is a professional credential for financial planners, granted by CFP Board in the US and FP Canada in Canada, that requires education, an exam, experience, and ongoing ethics commitments.