Frequently asked questions

What is Advice-Only financial planning?

Advice-Only financial planning is a service model where financial advisors or planners provide unbiased, personalized financial advice to clients without selling any financial products, receiving commissions, or charging based off of assets under management (AUM). This ensures that the planner's recommendations are solely based on the client's best interests, and not influenced by sales incentives.

How does Advice-Only financial planning differ from traditional financial planning?

Traditional financial planning often includes the sale of financial products, such as investments, insurance, or loans, where the planner may receive commissions or other incentives. In Advice-Only financial planning, planners focus exclusively on providing expert advice and do not sell any products or receive commissions, ensuring objectivity.

What services are typically offered in Advice-Only financial planning?

Services may include budgeting and cash flow management, retirement planning, tax planning, investment advice, risk management, estate planning, education funding, and other goal-based financial planning.

How are Advice-Only financial planners compensated?

Advice-Only planners charge transparent fees for their services, which may include hourly rates, flat fees, or a retainer-based model. They do not receive commissions from financial product sales or other third parties.

Can Advice-Only financial planners help with specific financial goals or life events?

Yes, Advice-Only financial planners can provide guidance on various financial goals and life events, such as buying a home, starting a business, paying off debt, or planning for retirement.

How does the Advice-Only financial planning process work?

The process usually begins with an initial consultation to discuss your financial goals, needs, and concerns. The planner will then gather information about your financial situation, analyze it, and develop a personalized financial plan. The planner will review the plan with you, provide recommendations, and offer ongoing support as needed.

Is Advice-Only financial planning suitable for everyone?

Advice-Only financial planning can benefit individuals at various stages of life and with different financial needs. However, those who prefer a more hands-on approach in managing their investments or finances may not find it as suitable.

How can I determine if Advice-Only financial planning is right for me?

Consider your financial goals, needs, and preferences when deciding if Advice-Only financial planning is right for you. If you are looking for unbiased, personalized advice without the influence of product sales, an Advice-Only planner may be an excellent fit.

How much does an advice-only financial advisor cost?

Advice-only financial advisors typically charge transparent fees that vary by service model. Common structures include hourly rates (often $150–$400/hour), flat fees for comprehensive financial plans (typically $1,000–$5,000), monthly subscriptions ($100–$500/month), or annual retainers. Unlike traditional advisors who charge a percentage of assets under management (AUM), advice-only advisors don't have asset minimums, making professional financial advice accessible to more people.

What is the difference between fee-only and advice-only?

Fee-only means the advisor is compensated solely by client fees — no commissions from product sales. Advice-only takes this a step further: the advisor provides expert financial advice and planning but does not manage your investment accounts or charge AUM (assets under management) fees. Both models reduce conflicts of interest, but advice-only eliminates the incentive to gather assets and puts the focus entirely on the quality of advice.

What is a fiduciary financial advisor?

A fiduciary financial advisor is legally and ethically obligated to act in your best interest when providing financial advice. This is the highest standard of care in the financial industry. All Advice-Only Network advisors operate as fiduciaries, meaning their recommendations are based solely on what's best for you — not on commissions, sales quotas, or asset management fees.

Do I need a financial advisor?

A financial advisor can be valuable at many stages of life — whether you're just starting your career, planning for a major purchase, navigating a life transition like marriage or having children, approaching retirement, or managing an inheritance. If you feel uncertain about your financial decisions, want a second opinion, or simply don't have the time to manage your finances effectively, working with an advisor can provide clarity and confidence.

What should I look for in a financial advisor?

Look for an advisor who is a fiduciary, has transparent pricing, holds relevant credentials (such as CFP®, CFA, or CPA), and specializes in areas relevant to your needs. It's also important that they don't have conflicts of interest — for example, earning commissions on products they recommend. Ask about their compensation model, experience with clients in similar situations, and their approach to financial planning. Advice-only advisors check many of these boxes by design.

Can an advice-only advisor help with investments?

Yes! Advice-only advisors provide expert investment advice, including portfolio analysis, asset allocation recommendations, fund selection, and retirement account optimization. The key difference is that they guide you on what to invest in and how to manage your portfolio, but you retain control of your own accounts and make the trades yourself. This approach empowers you with knowledge while avoiding ongoing AUM fees.

What is AUM and why should I avoid it?

AUM stands for Assets Under Management. It's a fee model where financial advisors charge a percentage (typically 0.5%–2%) of the investment assets they manage on your behalf. While common, AUM fees can become very expensive as your wealth grows — for example, 1% on a $1 million portfolio is $10,000 per year, regardless of the work involved. AUM also creates a conflict of interest: the advisor is incentivized to gather more assets rather than give advice that might reduce your managed balance, like paying off your mortgage.

How do I know if an advisor is truly advice-only?

A truly advice-only advisor does not manage client investment accounts, does not earn commissions from product sales, and charges transparent fees solely for their advice and planning services. On the Advice-Only Network, all listed advisors have been verified to meet our strict advice-only criteria. You can also check an advisor's Form ADV filing with the SEC, review their fee schedule, and ask directly about how they are compensated.

Can I get a one-time financial plan?

Yes, many advice-only advisors offer one-time comprehensive financial plans for a flat fee. This is a great option if you want professional guidance on a specific financial decision or a complete review of your financial situation without an ongoing commitment. You'll receive a detailed plan that you can implement on your own, and you can always return for an update when your situation changes.

Do advice-only advisors offer virtual meetings?

Yes, many advice-only advisors offer virtual meetings via video conferencing, making it easy to work with an advisor regardless of your location. This means you're not limited to advisors in your local area — you can choose the best advisor for your specific needs, whether they're across town or across the country. You can filter for advisors who meet virtually on the Advice-Only Network directory.

What credentials should a financial advisor have?

The most recognized credential in financial planning is the CFP® (Certified Financial Planner) designation, which requires rigorous education, examination, experience, and ethical requirements. Other valuable credentials include CFA (Chartered Financial Analyst), CPA (Certified Public Accountant) for tax-focused advice, ChFC (Chartered Financial Consultant), and RICP® (Retirement Income Certified Professional). On the Advice-Only Network, you can view each advisor's credentials on their profile.

How is advice-only different from a robo-advisor?

Robo-advisors are automated platforms that use algorithms to manage your investments based on a questionnaire, typically for a lower fee. While useful for simple investment management, they lack the personalized, comprehensive financial planning that a human advisor provides. An advice-only advisor considers your complete financial picture — taxes, insurance, estate planning, career decisions, and life goals — and provides tailored advice. Think of a robo-advisor as a GPS for investing, while an advice-only advisor is a personal financial coach for your entire financial life.