Hourly vs. Fee-Only Financial Advisors

If you’re one of nearly 60% of people without a financial advisor, you may be asking yourself how the relationship works. The way an advisor is compensated can impact your experience—from the level of attention you may receive to the degree to which your interests are aligned. Understanding how advisors charge for their services is one of the first steps to helping find the right fit for your personal situation.

There are several types of advisor fee models (including commission-based, flat-fee, and hybrid structures), but this blog will focus on two of the most common models: hourly and fee-only. Both can be useful, but they work in different ways. Keep reading to learn about how each works so you can identify which approach might feel right for you.

What is an Hourly Financial Advisor?

An hourly financial advisor charges you for the time you spend together. If you have a specific project in mind—say, creating a budget—this can be a cost-effective way to get professional guidance without a long-term commitment.

The upside is that you pay only when you need help. The tradeoff is that once the clock stops, so does the relationship. Unless you come back on your own, there’s no ongoing monitoring or check-ins.

Typical fees: According to industry data, hourly advisors often charge between $200 and $400 per hour, depending on location and experience.

Best fit for:

• Young professionals looking for short-term guidance on budgeting, debt management, or saving strategies
• DIY investors who prefer to manage their own portfolio but want an expert check-in
• Families looking for financial guidance on a specific goal

Pros: Flexibility, affordability, pay-as-you-go.

Cons: Limited follow-up, no proactive management, relationship ends when the project does.

Why Choose an Hourly Financial Advisor?

Life doesn’t always call for an ongoing relationship with an advisor—and that’s okay. Sometimes you just need professional guidance to get started or to tackle a specific question. An hourly model offers that flexibility, giving you access to professional advice without a long-term commitment.

Whether you’re creating a plan to pay off debt, building your first investment strategy, or reviewing your insurance coverage, hourly guidance can help provide clarity and confidence. It’s a way to get support that fits your pace.

What is a Fee-Only (AUM) Financial Advisor?

A fee-only advisor is someone who most often charges a percentage of the assets they manage for you. Instead of billing by the hour, their compensation is tied to your portfolio size. That means if your investments grow, so does their fee.

For example, if the advisor manages $10,000 of the client’s funds, and the fee percentage is 1%, the fee would be $10,000 x 0.01, which equals $100 in fees.

Typical fees: AUM advisors charge ~1% of assets under management, with potentially lower percentages at higher asset levels.

Best fit for:

• Professionals focused on tax planning, retirement, or investment management
• Families juggling multiple goals (college, mortgage, long-term investing)
• Retirees who want ongoing income management and financial planning

Pros: Long-term support, proactive planning, continuous investment management.

Cons: Ongoing cost, typically best suited for investors with a certain minimum level of assets.

This structure encourages an ongoing relationship. You’re not just hiring someone to answer a single question—you’re building a partnership with someone who will be there as your finances change.

Why Choose a Fee-only/AUM Financial Advisor?

Your goals change, markets move, and life events happen when you least expect them. A fee-only relationship can offer consistency and continuity when circumstances change. It allows for a deeper connection, continuous monitoring, and a holistic view of your finances.

It can be valuable to have an advisor who knows your personal situation —not just the numbers, but the “why” behind them. We believe this model can help clients feel more supported, understood, and confident in their path.

Hourly vs. Fee-Only: Key Differences

Questions to Ask Any Financial Advisor

Halbert Hargrove has published several guides over the years, including our 10 Questions to Ask When Choosing a Financial Adviser blog. While this resource dates back a decade, the core principles remain as relevant today as ever.

• Are they fiduciaries?
• What safeguards do they have in place to protect your privacy and assets?
• What are the qualifications, licenses, and certifications of their professionals?
• How do they charge for their services?
• Does the firm have direct custody of clients’ assets?
• What is the firm’s investment philosophy?
• What does their client service experience look like?
• What kind of succession planning has the firm done?
• What do they bring to the table that no one else does?
• Can they provide client retention and longevity statistics?

If you’re exploring your options, think about what kind of relationship you want with your advisor. Some people just want a check-in when they hit a bump in the road, while others feel more comfortable having a steady partner who’s invested in their long-term journey. While they are both great options, one may feel more aligned with the future you’re trying to build.

Halbert Hargrove’s financial advisors are here to help guide you through the process and build a plan designed for your goals. Reach out to us to get started.

Disclosure:

Halbert Hargrove Global Advisors, LLC (“HH”) is an SEC registered investment adviser with its principal place of business in Long Beach, California. HH may only transact business in those states in which it is registered, notice filed, or qualifies for an exemption or exclusion from registration or notice filing requirements. Registration does not imply a certain level of skill or training. For information pertaining to the registration status of HH, please contact HH or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov). Additional information about HH, including our registration status, fees, and services can be found at www.halberthargrove.com.

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