Flat Fee vs Hourly Financial Advisor: How Each Charges
A flat-fee advisor charges a set price for a defined service. An hourly advisor bills for the time spent. A percentage-of-assets advisor charges a share of the money they manage. Each model has trade-offs. I bill hourly at $395, so my fee follows the work, not your account balance.
Those are my published fees as of November 12, 2026. I am not a flat-fee advisor, and I explain below how my capped Initial Engagement differs from one. My current numbers are on my hourly financial planning fees page.
How do flat-fee, hourly and percentage-of-assets advisors charge?
The quickest way to compare them is side by side. Every model has a reason people choose it and a limit worth knowing before you sign anything.
| Model | How the fee is set | A possible benefit | A limit to weigh |
|---|---|---|---|
| Flat fee | A set price for a defined service, such as a one-time plan or an annual retainer | You may know the price before the work starts | The price only covers what the agreement lists, and a retainer can continue for as long as you stay enrolled |
| Hourly | Time spent on your questions, tracked in set increments | You pay for the work done, with no charge tied to account size | There is no ongoing management unless you hire the advisor again, and the final cost depends on the hours the work takes |
| Percentage of assets | A yearly percentage of the assets the advisor manages | Investment management and planning may come in one arrangement | The dollar fee generally moves with your balance and continues as long as the advisor manages the money |
Flat fee
A flat fee is a fixed amount for a defined scope. It might be a one-time price for a financial plan, or a recurring retainer for ongoing advice. The benefit is that you may know the price in advance. The limit is scope: anything outside the agreement may cost extra or may not be offered, and a recurring retainer keeps billing until you end it.
Hourly
With hourly planning, you pay for the advisor's time, usually tracked in increments. The fee does not rise or fall with your account balances. The limit is that an hourly engagement is not a standing relationship. The advisor is not managing your money day to day, and the total depends on how many hours your situation takes.
Percentage of assets
A percentage-of-assets (AUM) advisor charges a yearly percentage of the assets they manage for you. Some people like that investment management and planning may sit under one fee. The limit is that the dollar amount generally changes as your balance changes, and it continues for as long as the advisor manages the account. As an illustration of the arithmetic only, a 1% fee on $500,000 is $5,000 per year. Many advisors lower the percentage as balances rise, so ask for the actual schedule.
What does each model usually include?
Scope varies by firm, so the label on the fee tells you less than the written agreement does. As a general pattern:
- Flat fee. Often a written plan or a set number of meetings. Some flat-fee arrangements add ongoing access to the advisor, and some do not.
- Hourly. Meetings and analysis for the questions you bring. Any written deliverable, follow-up time and ongoing support depend on what the advisor offers.
- Percentage of assets. Investment management, usually with some planning. How much planning is included differs widely.
Whatever the model, ask whether implementation, tax preparation, insurance sales or legal documents are part of the service. Many are not, and that is a normal part of how advisors define their scope.
Are flat-fee financial advisors worth it?
It depends on what you want done and who will do it. A flat fee may suit someone who wants a defined deliverable at a known price, or a steady retainer for ongoing access. It may be a poorer match if you only have a few questions, or if you want the advisor to manage your investments for you.
A few questions help you test the fit:
- Do I want a one-time answer, a periodic checkup, or someone managing my accounts?
- Am I comfortable carrying out the recommendations myself?
- How would the fee change if my situation, or my balance, changes?
If you are roughly 55 to 75, in or near retirement, and comfortable implementing advice on your own, an advice-only arrangement may fit. If you want day-to-day portfolio management, a percentage-of-assets or other management arrangement may fit better. Neither is right for everyone.
What do advisor fees look like in surveys?
Fees vary by advisor, location and scope, so treat published figures as reference points, not quotes. One widely cited benchmark is the 2024 Kitces Research survey of financial advisors. As reported by SmartAsset (checked November 12, 2026), the median figures were:
| Fee model | Median reported (2024 survey) |
|---|---|
| Percentage of assets (including a financial plan) | About 1% per year |
| Hourly planning | $300 per hour |
| One-time standalone financial plan | $3,000 |
| Ongoing subscription or retainer | $4,500 per year |
A median describes the middle of the advisors surveyed. It does not describe what any one advisor charges, and my own rate and engagement fees are on my fees page, not in this survey.
What should I ask any advisor about fees?
Before you hire anyone, whatever the model, I would ask:
- How exactly are you paid? Only by me, or also by commissions or product providers?
- What does the fee include, and what costs extra?
- Is there a maximum total, and where is it written?
- Does the fee continue automatically, and how do I stop it?
- Who carries out the recommendations, you or me?
- How does the fee change if my balance or my situation changes?
Get the answers in writing, and compare agreements, not just headline rates.
How does my own model work?
I bill by the hour. I do not charge a flat fee, and I do not charge a percentage of your assets. My rate is $395 per hour for both the Initial Engagement and On-Demand planning, tracked in 15-minute increments.
Every new client starts with an Initial Engagement. As of November 12, 2026, my published ranges are:
- Individuals: 7 to 12 hours ($2,765 to $4,740)
- Couples: 12 to 17 hours ($4,740 to $6,715)
The Initial Engagement has a capped maximum fee written into the signed agreement, so you know the most it can cost before you begin. That can look like a flat fee, but it is not one. The cap is a ceiling, and the fee is still based on the time the work takes, so it may land anywhere within the range. A 25% deposit of the maximum is due after the initial information gathering, and the balance is due when the engagement ends. For the full sequence, see how the Initial Engagement works.
After that, any further planning is optional. On-Demand planning is billed monthly in arrears at the same hourly rate, and if no planning work is done, you pay nothing. There are no asset-based or mandatory ongoing fees, and I receive no commissions or other sales-related compensation. My only compensation comes directly from clients.
An hourly model has limits, and I want you to know them up front:
- No ongoing investment management. I give advice, and you implement it in your own accounts.
- No tax preparation. I do not prepare or file returns. My income tax planning looks ahead at multi-year strategies, and I am glad to work with your CPA.
- No insurance sales. I can review your coverage, but you cannot buy insurance products through me.
- No legal documents. My estate planning advice is limited, and an estate attorney would draft any legal documents.
If you want the full cost breakdown, read what an hourly financial planner costs, and the FAQs cover billing, meetings and who implements the plan.
Common questions about flat-fee and hourly advisors
What is a flat-fee financial advisor?
A flat-fee advisor charges a set price for a defined service, such as a one-time financial plan or a recurring annual retainer. The price does not depend on the size of your accounts. What the price covers varies by advisor, so read the agreement for the scope, the term and how to cancel.
Are flat-fee financial advisors worth it?
They may be, depending on what you need. A flat fee can suit a person who wants a defined deliverable at a known price. It may fit less well if you want investments managed for you, or only have a few questions. Compare what is included and what could cost extra before deciding.
Is an hourly advisor the same as a flat-fee advisor?
No. An hourly advisor bills for time spent, so the total depends on the hours the work takes. A flat-fee advisor sets the price for a defined scope. My Initial Engagement has a capped maximum, but I still bill by the hour within that cap.
How are fees paid to financial advisors?
Advisors may be paid by a percentage of assets, a flat fee, an hourly rate, commissions on products, or a combination. Ask any advisor to list every way they are paid for the work they would do for you, and to put it in writing.
Your next step
If an hourly, advice-only model sounds like a fit, start with my hourly financial planning fees page for the current numbers. When you are ready, schedule your free 30-minute introductory call. There is no cost for anything before you sign an agreement.
Sources
- SmartAsset, How Much Does a Financial Planner Cost?, reporting median fees from the 2024 Kitces Research survey (checked November 12, 2026).
- My own fee figures come from my hourly financial planning fees page as of November 12, 2026.
This article is for general education and is not personalized advice. Fees and services may change, and what you pay depends on your individual circumstances. The 1% example is arithmetic for illustration only, not a quote or a recommendation.