I’m confused by labels. What does fee-only mean? How is it different than fee-based? And what the heck does advice-only mean?

Fee-only means that a financial advisor is 100% compensated by clients. “Fee-based” is a term that is no longer allowed to be used by CFP® certificants, but many still do. CFP® certificants who receive any form of compensation from third parties must refer to themselves as “commission-and-fee,” not fee-based anymore.

How is advice-only different from fee-only?

A fee-only advisor may manage a client’s investments. An advice-only advisor is a type of fee-only advisor who only gives advice and does not manage investments.