Identifying the right adviser
Lemoine says it is a mistake to assume that a fee-only planner is superior to a fee-based adviser simply because the latter may earn commissions.
For example, he believes the fee-based approach can make more sense for an investor who does not have several hundred dollars to pay an upfront flat fee to a fee-only planner.
"I've encountered wonderful financial planners who work only on commissions," Lemoine says.
Joshua Itzoe, a partner and managing director at Greenspring Wealth Management in Towson, Md., has worked under three compensation models -- fee-only, fee-based and straight commission-based.
"It's important to realize that there are good and bad advisers in all three scenarios," he says.
Today, Itzoe works as a fee-only planner.
"I have found the fee-only method to be the simplest and most transparent model for clients," he says.
By contrast, with a fee-based or straight-commission model, "there can often be an incentive to sell one product over another" because the adviser makes more money when selling certain products, he says.