Fiduciary Financial Planning
Fee-Only Financial Advisor in Minnesota
A fee-only financial advisor is compensated solely by client fees, never by commissions from product sales. This model is designed to reduce compensation-related conflicts and align your advisor's incentives with your financial goals.
What Fee-Only Means
Transparent Financial Advice, Paid Only By You
A fee-only financial advisor in Minnesota is a professional compensated solely by client fees, with no commissions, 12b-1 fees, or product-based compensation of any kind. According to NAPFA (National Association of Personal Financial Advisors), the defining standard is that neither the advisor nor any related party receives compensation contingent on the purchase or sale of a financial product. This structure is designed to reduce certain compensation-related conflicts, though conflicts may still exist and should be evaluated individually.
How Common Is the Fee-Only Model?
Approximately 4.9% of U.S. financial professionals operate as true fee-only fiduciaries, according to industry analysis citing 2024 data (Human Investing, 2025). Fee-only advisors have grown from roughly 15% of the advisory market in 2012 to approximately 25% as of 2026, but still represent a minority of the profession. Sources: NAPFA membership standards (as of June 2026); Human Investing analysis (as of 2025).
Why Minnesota Professionals Seek Fee-Only Advice
Minnesota's progressive income tax structure creates planning complexities that make compensation transparency especially valuable. Understanding how your advisor is paid is one of the most consequential decisions a professional can make before hiring one.
9.85%
Minnesota Highest Marginal Income Tax Rate (2026)
~4.9%
of U.S. Advisors Are True Fee-Only Fiduciaries
0%
Commissions Received by Fee-Only Advisors
~25%
Fee-Only Share of Advisory Market (2026, Up from 15% in 2012)
Sources: Minnesota Department of Revenue (2026 tax brackets); Human Investing (2025, citing 2024 data); NAPFA membership standards. Figures are approximate and as of June 2026.
Compensation Models Compared
Fee-Only vs. Fee-Based vs. Commission-Based
Understanding how your advisor is paid is one of the most important steps in selecting a financial professional. The compensation model shapes what is recommended and why.
| Characteristic | Fee-Only | Fee-Based | Commission-Based |
|---|---|---|---|
| Compensation Source | Solely from client fees | Client fees plus commissions | Commissions on product sales |
| Product Commissions | None | May receive 12b-1 or trail commissions | Primary compensation source |
| Conflict Potential | Reduced by absence of product incentives; may still exist | Dual structure may create conflicting incentives | Compensation tied to product recommendations |
| Fiduciary Obligation | Typically registered as RIA; ongoing fiduciary duty | May vary by engagement and registration | Subject to Reg BI at point of recommendation |
| Transparency | All compensation disclosed; paid directly by client | Mixed; some compensation may not be visible | Commissions embedded in product costs |
Source: NAPFA fee-only definition; SEC Regulation Best Interest; CFP Board standards. This table is educational and does not constitute legal or regulatory advice. Individual arrangements may vary.
Our Approach
Strategy Before Products
At New Horizons Boutique Financial Services, every recommendation begins with a clear strategy before any products are discussed. We build a comprehensive financial picture covering investments, taxes, income, cash flow, debt, insurance, and estate planning before making recommendations. This approach is designed to ensure that your plan serves your goals rather than any product incentive.
For executives at major Minnesota employers such as 3M, Target, and General Mills, we coordinate company benefit programs with personal wealth strategies. Our approach considers stock options, deferred compensation plans, and pension benefits in the context of Minnesota's tax landscape, where the highest marginal state income tax rate reaches 9.85% as of 2026.
Results vary by individual circumstances, and all strategies involve trade-offs. Tax-aware planning may help reduce your overall tax burden, but outcomes depend on your specific situation and may change as tax laws evolve. Learn more about our fiduciary approach.
Our Process
Financial Assessment
Comprehensive review of your current financial position, including assets, income, taxes, and expenses
Strategy Development
A tailored plan addressing your unique goals, timeline, and Minnesota-specific tax considerations
Implementation
Execute the strategy with ongoing monitoring, quarterly reviews, and adjustments as life evolves
Boutique by Design
We intentionally limit our client count so every relationship receives full time and attention. Your plan is built for your situation, not adapted from a template.
Who We Serve
We work with Minnesota professionals and executives who want clarity, structure, and a long-term advisory relationship built on trust and accessibility.
Executives Nearing Retirement
Professionals planning a confident transition from career to financial independence
Professionals Seeking Clarity
Individuals wanting to understand where they stand today and what comes next
Business Owners Exiting
Owners planning for liquidity events and life after business ownership
People Seeking Financial Freedom
Those building a long-term strategy for flexibility, security, and future opportunity
Our Services
Comprehensive Financial Planning for Minnesota
Retirement Strategy Development
Navigate Minnesota's tax landscape with strategies designed to coordinate retirement income. We address Social Security timing, 401(k) distributions, and Roth conversions as part of an integrated plan. Minnesota taxes Social Security for higher earners and applies ordinary income rates up to 9.85% to retirement distributions. Learn more about retirement planning in Minnesota.
Tax Optimization Planning
Minnesota's progressive tax structure creates opportunities for strategic tax management. We develop multi-year tax strategies that may help reduce overall tax burden while supporting long-term financial goals. Results vary by individual tax situation and may involve trade-offs. Explore tax planning strategies for high-income individuals.
Business Owner Exit Planning
Minnesota business owners face unique considerations when planning liquidity events. We coordinate tax strategies, succession planning, and wealth preservation to help support post-sale financial security. Read our Minnesota business exit planning guide.
Financial Independence Planning
Determine whether you are financially ready to reduce or stop working. We analyze income needs, expense projections, and asset sustainability to provide clarity on your financial independence timeline. Learn about financial independence planning.
Credentials and Experience
Professional Credentials You Can Verify
Our team brings regulatory credentials and academic expertise to serve Minnesota clients. Lars Engman holds an MBA and FINRA Series 7, 63, 65, and 66 registrations. Alec Engman holds a B.S. in Economics from the University of Minnesota. Both are Life and Health Insurance Licensed.
As a registered investment advisor, we are legally required to act in your interest. Our fiduciary obligation, combined with our fee-only compensation model, is designed to reduce certain compensation-related conflicts. Conflicts may still exist and should be evaluated individually. You can verify advisor registrations through FINRA BrokerCheck or the SEC Investment Adviser Public Disclosure system.
Serving clients across Lake Elmo, Afton, Bayport, Arden Hills, Apple Valley, Anoka, Andover, Albertville, Belle Plaine, Austin, Alexandria, and the broader Twin Cities metro.
FINRA Series 7
General Securities Representative
FINRA Series 63
Uniform Securities Agent
FINRA Series 65
Investment Advisor Representative
FINRA Series 66
Combined State Law
MBA
Lars Engman
B.S. Economics
Alec Engman, University of Minnesota
Life and Health
Insurance Licensed
Frequently Asked Questions
Questions About Fee-Only Financial Advisors in Minnesota
Is it better to have a fee-only financial advisor?
A fee-only advisor is compensated solely by client fees, which is designed to reduce certain compensation-related conflicts that can arise when an advisor earns commissions on product sales. Whether this model is better for you depends on your individual circumstances, preferences, and the complexity of your financial situation. Fee-only advisors may charge higher direct fees than commission-based alternatives, since all compensation is transparent and paid by the client rather than embedded in product costs. This trade-off is worth evaluating based on your needs.
What is the average cost of a fee-only financial advisor?
Costs vary widely depending on the scope of services, assets managed, and complexity of the financial situation. Fee-only advisors typically charge either a flat fee for financial planning, an hourly rate, or a percentage of assets under management. Contact a fee-only advisor directly to understand their specific fee structure and what services are included. We are happy to discuss our fee arrangement during a no-cost initial consultation.
Are fee-only financial advisors worth it?
Whether a fee-only advisor is worth the cost depends on the value of the comprehensive planning provided relative to the fee. Fee-only advisors provide ongoing strategy development, tax planning coordination, retirement income planning, and estate planning guidance. For professionals with complex financial situations, Minnesota-specific tax considerations, or company benefit programs to coordinate, the value of integrated planning may justify the fee. Results vary by individual circumstances.
What is one potential drawback of using a fee-only financial advisor?
A potential drawback is that fee-only advisors charge direct, transparent fees that the client pays out of pocket, which can feel more expensive than commission-based alternatives where costs are embedded in product expenses. In some cases, the total cost of a commission-based arrangement may actually exceed the fee-only cost, but the visibility of the fee can be a psychological barrier. Additionally, fee-only advisors may have minimum asset or income requirements that could exclude some prospective clients.
How do I find a fee-only advisor in Minnesota?
You can search the NAPFA directory or the Fee-Only Network for advisors in Minnesota. You can also verify an advisor's compensation model by reviewing their Form ADV filed with the SEC, which discloses how the advisor is compensated. We encourage you to schedule a no-cost initial consultation to ask questions about our fee structure, services, and approach before making any commitment.
Connect With Us
Start With a Conversation, Not a Sales Pitch
The first meeting is no cost and no obligation. We will listen to where you are today, what concerns you, and what you want your next chapter to look like. From there, we can determine whether our approach is a fit.
8647 Eagle Point Blvd. Suite #1, Lake Elmo, MN 55042
Email: info@newhorizonsbfs.com