Why I Chose an Hourly-Only, Advice-Only Financial Planning Model
As a financial planner, one of the pivotal decisions I have faced is how to structure my business and fee model. After considering each type, I chose an hourly-only, advice-only approach, meaning you pay only for the hours I spend working with you, and I do not manage your assets. I believe this model is best for DIYers who love to manage their own money!
Here's why this model aligns best with my vision for delivering financial planning services and education:
Why Hourly-Only?
Transparency and Simplicity
The hourly billing model is straightforward. You pay for the amount of time I spend advising you and working on your plan, which promotes transparency. There's no ambiguity about whether you're getting value for your money. I will give you a quote before any work is done based on the information you provide, we come to an agreement on the price, and then I get to work.
Accessibility for All
Financial planning shouldn't be a luxury reserved for those with substantial assets. An hourly model makes financial advice accessible to a broader audience, including young professionals, those with modest savings, or anyone looking for specific advice without committing to long-term, potentially expensive plans. This democratizes financial planning, and makes it more widely available for everyone, not just the wealthy. With an hourly fee, my incentive is purely to provide the best possible advice in the allotted time, regardless of your net worth or investment size.
Flexibility
Needs will vary, and some clients might require extensive planning sessions while others might need only occasional advice. The hourly model allows for this flexibility. You can choose how much or how little service you want to purchase. It's like hiring a lawyer or accountant where you pay for the expertise and the time you need it.
Why Advice-Only?
Focus on Pure Advice
By choosing to be advice-only, I aim to provide unbiased, conflict-free recommendations. This structure allows me to give advice without the pressure to sell products or manage assets, ensuring that every piece of advice is in your best interest. I build the portfolio around your individual situation and then can teach you how to click the buttons to make it happen (your brokerage should be able to help you implement it as well).
Educational Empowerment
My goal is not just to create a financial plan for you, but to educate you so you can implement it yourself. An hourly model can encourage you to engage more deeply with your financial planning process. You are more likely to ask questions, seek understanding, and participate actively in your financial decisions because you are directly investing in financial education with each hour.
Client Control
When you opt for hourly services you retain full control over your financial decisions. You can implement the advice yourself or choose to involve other professionals for execution. This model fosters a partnership approach where you feel empowered, not just served. These are valuable skills that can then be passed on to your children and grandchildren!
Fee Savings
And last but not least, I love this model because it can save you money in the long run! YOU should be the one benefitting from growth in your portfolio. You decide how much time you want to purchase and when, and you then implement any recommendations or changes. To see a more in-depth example of how it could save you money over time, check out the How Much Could You Save? section here.
Choosing an hourly-only, advice-only model for my financial planning practice wasn't just a business decision; it was a philosophical one. It aligns with my commitment to transparency, client empowerment, and ethical service delivery. This approach might not suit every financial planner or client scenario, but for those seeking clarity, directness, and empowerment in their financial journey, I believe it provides a compelling alternative to traditional models. If that appeals to you or if you have questions, please feel free to reach out!
