What's the difference between AUM and flat-fee pricing?

AUM charges a percentage of the money they manage, so the bill rises as your portfolio grows even if the work doesn't. Flat-fee or hourly charges for the advice itself. For larger portfolios, flat-fee planning is often dramatically cheaper over time; for hands-off investors who want managed accounts, AUM can be simpler.

When do I not need a financial planner?

If your situation is simple — a steady salary, an employer 401(k) you can max, no business, no equity comp, and a clear budget — a low-cost index fund and a free retirement calculator may do the job. Hire a planner when complexity, a windfall, or a major decision makes a mistake expensive.

How much does a financial planner cost in 2026?

Q: How much does a financial planner cost?

In 2026, expect roughly $200 to $400 an hour for hourly advice, $2,000 to $8,000 for a one-time comprehensive flat-fee plan, or 0.5% to 1.25% of assets a year for ongoing assets-under-management service. A growing number of fee-only planners also charge a flat $2,000 to $7,500 a year retainer regardless of portfolio size.

Q: Is a fee-only financial planner worth it?

For most people with real complexity — equity comp, a business, retirement decisions, or estate questions — yes. A fee-only fiduciary is paid by you, not by commissions on products they sell, which removes the biggest conflict of interest. The fee pays for itself when it prevents one expensive tax or withdrawal mistake.

A financial planner costs about $200 to $400 an hour, $2,000 to $8,000 for a one-time comprehensive plan, or 0.5% to 1.25% of your assets a year for ongoing management. Flat annual retainers from fee-only planners run roughly $2,000 to $7,500 regardless of portfolio size. Which model you pay decides far more than the headline rate.

We're a web and marketing agency for service businesses, not a financial advisor — so we have no product to sell you here. This is a buyer's-side breakdown of what planners charge, why, and when you may not need one yet. If you ARE a planner, the way clients judge your fee online is exactly what your site has to address.

The four ways planners charge

Hourly advice

$200–$400/hr

Pay for a specific question — a one-time portfolio review, a rollover decision, a "can I retire" check. Cheapest if you only need occasional guidance and will execute the moves yourself.

Flat-fee comprehensive plan

$2,000–$8,000

A full written plan covering retirement, taxes, insurance, and estate basics. A one-time cost tied to the work, not your balance. Often the best value for a complex situation you can then run mostly yourself.

Annual retainer (flat)

$2,000–$7,500/yr

Ongoing advice for a fixed yearly fee, independent of portfolio size. Increasingly common with fee-only fiduciaries and usually cheaper than AUM once your balance passes a few hundred thousand dollars.

Assets under management (AUM)

0.5%–1.25%/yr

A percentage of the money they manage. On a $500,000 portfolio at 1%, that's $5,000 a year, every year, rising as the balance grows. Simple and hands-off, but the most expensive over a long horizon.

What moves the price

→ Complexity — equity comp, a business, rental properties, or a blended estate take more hours and raise a flat fee.
→ Fiduciary vs. commission — fee-only fiduciaries bill you directly; commission-based advisors look "free" but earn on products they sell you.
→ Credentials — a CFP professional usually charges more than a general advisor, and for planning work, often earns it.
→ Ongoing vs. one-time — a single plan is cheaper than a relationship, but you give up the year-round check-ins.

When you don't need to hire one

A planner is worth real money when a mistake is expensive. Skip it for now if:

• Your finances are simple — a steady salary, an employer 401(k) you can max, no business or equity comp.
• You're early in saving and the bigger lever is just spending less than you earn and investing the gap in low-cost index funds.
• You'd be paying ongoing AUM for a portfolio a free target-date fund could run for a fraction of the cost.

Hire one when complexity, a windfall, retirement timing, or a major decision means a wrong move costs more than the fee. For a one-time question, hourly or flat-fee usually beats handing over a percentage forever.

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If you're the planner, not the client

Everything above is what a prospect weighs before they ever call you. A site that states your fee model plainly, shows your credentials, and lets someone book wins that comparison. See financial planner website design, financial planner marketing, and SEO for financial planners. Researching your own costs? Read how to choose a financial advisor or browse more cost guides.

Common questions

Is a fee-only financial planner worth it?

For most people with real complexity, yes. A fee-only fiduciary is paid by you, not by product commissions, which removes the biggest conflict of interest. The fee pays for itself when it prevents one expensive tax or withdrawal mistake.

AUM or flat-fee — which is cheaper?

AUM charges a percentage that grows with your balance even when the work doesn't. Flat-fee charges for the advice. For larger portfolios, flat-fee is often far cheaper over time. For hands-off investors who want managed accounts, AUM can be simpler.

When do I not need a planner?

If your situation is simple — steady salary, a maxable 401(k), no business or equity comp — low-cost index funds and a free retirement calculator may do the job. Hire one when complexity or a major decision makes a mistake expensive.

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