Hourly planners charge an average of about $300 an hour, and the median annual subscription fee was $4,500 in 2024 (Kitces, Improving the Scalability of Flat-Fee Models, August 31, 2026). A 1% asset fee on $1,000,000 is $10,000 a year.
Three ways to pay for advice without an asset fee
Most advisory firms charge a percentage of the money they manage, called an assets under management (AUM) fee. Kitces Research found 86% of firms used AUM as their primary way of charging in 2024 (Kitces, Trends in Financial Advice Fees, June 16, 2025). A smaller group charges for advice by the hour, by the project or by the year, whatever your balance.
- Hourly. You pay for the time spent on your questions, such as when to claim Social Security or whether a Roth conversion fits this year.
- Project or one-time plan. A set price for a written plan covering the areas you agree on.
- Annual retainer or subscription. A yearly or monthly fee for ongoing advice and check-ins.
"Advice-only" usually means the planner gives advice but does not hold or manage your accounts. You, or your existing firm, carry out the trades. "Fee-only" is a separate idea about pay: under CFP Board's code, a CERTIFIED FINANCIAL PLANNER (CFP) professional may describe the compensation as fee-only only if no sales-related compensation is received (CFP Board, Code of Ethics and Standards of Conduct, checked October 14, 2026). Both labels are worth confirming in writing. For the difference between fee-only and fee-based, see Fee-only vs fee-based.
What flat-fee and hourly advice typically costs
Published data on these fees is thin, and most of it comes from surveys of advisors. The figures below are averages and medians, not quotes. Your price depends on complexity, scope and location.
- Hourly: an average of about $300 an hour (Kitces, Improving the Scalability of Flat-Fee Models, August 31, 2026).
- One-time plan from hourly advisors: an average of $2,886 for most plans and $3,875 for the most complex plans (same source).
- Annual subscription: a median of $4,500 in the 2024 Kitces Research on Advisor Productivity, up from $3,000 in 2022, with the top 10% of firms charging at least $9,200 (same source). Subscription fees were the primary revenue source for 9% of advisors and used in some form by 34%.
A retired household with a pension decision, rental property, a business sale or an estate question may be quoted above these averages. Ask for the price in dollars, what it covers and how it changes in later years.
Why few people pay a visible fee
A 1% fee on $1,000,000 is $10,000 a year. In a 2024 industry survey cited by Kitces, 62% of advisors charged at least 1% on a $1 million portfolio, and 32% on a $2 million portfolio (Kitces, Trends in Financial Advice Fees, June 16, 2025). The fee is usually deducted from the account, so no one writes a check.
Research on fund investors suggests visibility matters. Barber, Odean and Zheng found investors were "more sensitive to salient, in-your-face fees, like front-end loads and commissions, than operating expenses" (Journal of Business, Out of Sight, Out of Mind, November 2005). A $5,000 check feels like a cost. A percentage taken quietly from a growing account often does not. That is human, not foolish.
In fairness, an AUM fee usually buys more than advice. Kitces reports that on average 59% of an AUM fee is attributed to investment management and 41% to planning and other services (Kitces, June 16, 2025). If you want someone else to run the portfolio, rebalance and handle paperwork, that has value. The useful comparison is what each option covers, in dollars. For the full fee picture, see financial advisor fees, and run your own numbers in the advisor fee calculator.
When each model can make sense
- Hourly fits a few clear questions: a pension lump sum, a Social Security claiming age, a Roth conversion in a low-income year.
- A one-time plan fits someone who will carry out the plan alone and wants a full review before or early in retirement.
- A retainer fits people who want a yearly check on taxes, required minimum distributions and Medicare income brackets without handing over their accounts.
- An AUM relationship can fit someone who does not want to manage investments, or who wants a firm to act if health declines. Ask whether the fee is tiered and negotiable.
Advice-only works best for people who will actually act on the advice. A plan that sits in a drawer costs money and saves nothing.
How to find one, and how to check them
Several professional directories list planners who charge for advice rather than products. Each sets its own rules for who is listed, and a listing is not an endorsement by this site.
- The National Association of Personal Financial Advisors (NAPFA) describes its members as fee-only, fiduciary advisors (NAPFA, Find an Advisor, checked October 14, 2026).
- The Garrett Planning Network describes members who offer hourly or project-based advice without minimums (Garrett Planning Network, checked October 14, 2026).
- XY Planning Network says its search lists CFP professionals who offer fee-only planning, many of them virtually (XY Planning Network, Find an Advisor, checked October 14, 2026).
- CFP Board runs a public search for CFP professionals (Let's Make a Plan, checked October 14, 2026).
- The Advice-Only Network says it lists planners who charge flat or hourly fees with no commissions and no AUM (Advice-Only Network, checked October 14, 2026).
Then check the person. Read the firm's Form CRS and brochure at Investor.gov/CRS, and look up any broker history on FINRA BrokerCheck. Confirm what the letters after the name mean with financial designations, decoded. Most important, get the scope in writing: does the fee include tax planning, Social Security, insurance review and a review of your estate documents, or only investments?
A plain example with numbers: 10 years of advice on $1,000,000
Hypothetical. Option A: a one-time $5,000 plan plus a $2,500 annual retainer, starting in year 1. Option B: a 1% AUM fee on a $1,000,000 account that grows an assumed 5% a year after all fees. Both fees are hypothetical, not quotes, and the 5% is an assumption, not a forecast.
| Hypothetical | AUM balance at start of year | 1% fee that year | AUM fees to date | Flat fee that year | Flat fees to date |
|---|---|---|---|---|---|
| Year 1 | $1,000,000 | $10,000 | $10,000 | $7,500 | $7,500 |
| Year 2 | $1,050,000 | $10,500 | $20,500 | $2,500 | $10,000 |
| Year 3 | $1,102,500 | $11,025 | $31,525 | $2,500 | $12,500 |
| Year 5 | $1,215,506 | $12,155 | $55,256 | $2,500 | $17,500 |
| Year 10 | $1,551,328 | $15,513 | $125,779 | $2,500 | $30,000 |
The arithmetic: each year's AUM fee is 1% of that year's starting balance, and the balance grows 5% a year, so year 10 starts at $1,000,000 × 1.05 to the 9th power = $1,551,328. Ten years of AUM fees add to $10,000 × (1.05 to the 10th power minus 1) ÷ 0.05 = $125,779. The flat-fee path is $5,000 + 10 × $2,500 = $30,000. The difference is $95,779, before counting the growth those fees would have earned.
What the table leaves out: the AUM fee usually includes investment management, which the flat-fee client must do or buy separately. Fund expenses apply either way. Real AUM schedules are often tiered, and retainers can rise. The point is the shape: a percentage fee grows with the account, and a flat fee does not.
Red flags
- A "flat fee" planner who also sells annuities, life insurance or funds on commission.
- A plan priced as "flat" that turns into a percentage once you agree to move your accounts.
- A scope that leaves out taxes, so Roth conversions, required minimum distributions and Medicare income brackets are never modeled.
- No written engagement letter stating the price in dollars, what is covered and what is not.
- "Fee-only" on the website while the Form CRS or brochure shows commissions or other sales pay.
- A free first plan that ends with a product recommendation from the same person.
- An hourly quote with no estimate of total hours for your situation.
- A retainer that renews automatically at a higher price with no notice.
- Advice to move all assets for "implementation" when you asked for advice only.
- Pressure to decide in the first meeting.
Questions to ask before you sign
- Are you paid only by me, and will you put in writing that you receive no commissions or referral fees?
- What is your total price in dollars for my situation, and what does it include?
- Does your plan cover taxes, including Roth conversions, required minimum distributions and Medicare income brackets?
- Will you review my estate documents and beneficiary designations, or only my investments?
- How many hours do you expect this to take, and what happens if it runs over?
- If I hire you on retainer, what will the fee be next year, and how can I cancel?
- Will you require me to move my accounts to you to keep working with me?
- How will I carry out your advice, and will you help me do it?
- Are you a fiduciary for all of the advice you give me, and will you put that in writing?
- Where can I read your Form CRS or brochure, and what does it say about your pay?
Read This Before You Sign
A one-page checklist: the red flags in annuity and indexed universal life (IUL) sales, and the questions to ask before you sign anything. A planner-hiring checklist: scope, total price in dollars, fee-only proof and the records to check first. We’ll email it to you.
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Sources
- Kitces: Improving the Scalability of Flat-Fee Models to Capture the Whole Value of Advice (August 31, 2026)
- Kitces: Trends in Financial Advice Fees: What Financial Advisors Are Actually Charging (June 16, 2025)
- Barber, Odean and Zheng: Out of Sight, Out of Mind: The Effects of Expenses on Mutual Fund Flows, Journal of Business 78(6) (November 2005)
- CFP Board: Code of Ethics and Standards of Conduct (checked October 14, 2026)
- Investor.gov: Understanding Fees (checked October 14, 2026)
- Investor.gov: Form CRS search (checked October 14, 2026)
- NAPFA: Find an Advisor (checked October 14, 2026)
- Garrett Planning Network (checked October 14, 2026)
- XY Planning Network: Find an Advisor (checked October 14, 2026)
- CFP Board: Let's Make a Plan (checked October 14, 2026)
- Advice-Only Network (checked October 14, 2026)
The Retirement Literacy Foundation is a 501(c)(3) public charity. This page is general education, not tax, legal or investment advice. Nothing is sold here, no product is recommended, and RLF accepts no funding from financial companies. Rules and figures change; each one above shows its source and date. Check anything you plan to act on with your state insurance department or a qualified professional who is not paid on the product.