Getting financial advice seems like it should be simple, but it’s not. At some point in time almost everyone has financial questions they would like guidance on. Anyone who has tried to find an advisor though quickly learns that if you don’t have at least $500,000 that you are looking to invest, it is hard to get anyone to talk to you. And those people who will talk to you likely start to try to sell you an insurance product pretty quickly. And while I have no problem with insurance when insurance is needed, I do not think it is an investment nor is it the answer to every financial question.
Lot’s of people call themselves “financial advisors” and look similar to the end consumer. However, if you look under the surface you find that some are insurance salespeople, others are representatives selling the investment products of a single firm, and some require that you give them your life savings and hefty ongoing fees in exchange for some minimal advice and an annual portfolio review. How is a consumer supposed to weed through all of this and know what is best for them when all they really need is someone to help them make sure their 401k is invested properly and to decide if they should set up a Roth IRA?
As life changes, so do your financial needs. Fortunately, the financial planning industry is also evolving and there are new service models that better align with consumer needs. Whether you are navigating a major life transition like divorce, planning for your children’s education, or simply looking to organize your financial future, there are different financial planning models to consider far beyond traditional AUM (assets under management). Three common approaches—hourly, project, and subscription financial planning—offer unique benefits depending on your circumstances and needs. Understanding how these models work can help you choose the right one for your situation.
What is Hourly Financial Planning?
Hourly financial planning is a pay-as-you-go model where you hire a financial planner for a specific period to address a particular issue. Instead of committing to a comprehensive plan or long-term relationship, you only pay for the time and expertise you need.
How It Works:
- You schedule a session or series of sessions with a financial planner to address specific questions or concerns.
- The planner bills you based on the number of hours spent working on your case. This could include time for consultations, research, or preparing reports.
- Hourly rates can vary widely depending on the planner’s expertise and geographic location.
Who Can Benefit from Hourly Financial Planning?
- Individuals with Specific Financial Questions: If you’re generally comfortable managing your finances but need guidance on a particular issue—like adjusting your investment portfolio or understanding tax implications—hourly planning can be ideal. You get expert advice without the need for a long-term commitment.
- Do-It-Yourselfers: Those who prefer to handle most aspects of their financial lives independently but occasionally need professional advice may find this model appealing. For example, someone planning a real estate investment or navigating a one-time financial event like selling a business might benefit from a few hours with a planner to fine-tune their strategy.
- People in Transition: If you’re going through a life transition—such as a divorce, death of a spouse, or career change—you may only need help for a short time. Hourly planning can be cost-effective in situations where specific, one-time decisions are critical.
Pros of Hourly Planning:
– Flexibility: You’re not tied to long-term commitments.
– Cost-Effective: You only pay for the time you need.
– Targeted Expertise: Focus on solving a particular problem or achieving a specific goal.
Cons of Hourly Planning:
– No Ongoing Support: Once the session ends, there’s no follow-up unless you pay for more time.
– Limited Scope: If your financial needs are more complex, hourly planning may not be comprehensive enough to cover all areas.
What is Project Financial Planning?
Project-based financial planning focuses on creating a comprehensive financial plan. The planner works with you to assess your overall financial picture and design a detailed plan to help you achieve your goals.
How It Works:
– The planner conducts an in-depth analysis of your finances, including income, expenses, savings, investments, insurance, and more.
– They create a financial plan tailored to your goals—whether that’s retirement, saving for education, or ensuring you’re protected in case of an emergency.
– You pay a one-time fee for the development of the plan. After that, you may choose to implement the recommendations on your own or hire the planner for further assistance.
Who Can Benefit from Project Financial Planning?
- People Seeking a Roadmap for Long-Term Goals: If you’re looking for comprehensive guidance on how to meet significant financial milestones—such as retirement or funding your children’s education—project financial planning can be highly beneficial. The detailed nature of the plan offers clarity on how to achieve your long-term goals.
- Those with a Complex Financial Picture: If you have multiple sources of income, complex investments, or own a business, a one-size-fits-all approach won’t work. A tailored financial plan can address these complexities, offering strategies that fit your unique circumstances.
- Individuals in Major Life Transitions: If you are navigating a divorce, receiving an inheritance, or changing careers, a comprehensive financial plan will ensure that you’re considering all aspects of your financial situation. This can give you peace of mind during a potentially stressful time.
Pros of Project Planning:
– Comprehensive Approach: You get a full financial analysis that covers all aspects of your financial life.
– Goal-Oriented: The plan is specifically tailored to help you meet your long-term financial goals.
– Clear Action Steps: You receive a detailed roadmap with actionable recommendations.
Cons of Project Planning:
– One-Time Interaction: After receiving the plan, you may be left to implement it on your own unless you opt for ongoing support.
– Higher Upfront Cost: Because this model involves a comprehensive assessment, it can be more expensive than hourly planning.
What is Subscription Financial Planning?
Subscription financial planning offers ongoing, comprehensive financial advice for a regular fee—often monthly or quarterly. Unlike the project model, where the relationship might end after the plan is delivered, subscription models are designed to provide continuous support.
How It Works:
– You enter into an ongoing relationship with a financial planner, paying a subscription fee that covers regular check-ins, updates to your financial plan, and advice on a wide range of issues as they arise.
– The planner may offer services like investment management, tax planning, and estate planning as part of the subscription.
– This model typically involves a holistic approach, with the planner serving as a financial partner who helps you make adjustments and decisions as your life evolves.
Who Can Benefit from Subscription Financial Planning?
- Those Seeking Continuous Guidance: If you prefer having someone in your corner as your financial partner—someone who can help you navigate life’s ongoing financial decisions—a subscription model is an excellent fit. You have access to ongoing support, which can be especially valuable if your financial situation changes frequently.
- Individuals Facing Regular Financial Changes: If your finances are continually evolving—due to income fluctuations, changing tax laws, or new investment opportunities—a subscription model offers ongoing guidance to ensure your financial strategies remain aligned with your goals.
- People Wanting Accountability: If you’re someone who needs help staying on track with financial goals or sticking to a budget, having a planner available for regular check-ins can help ensure you’re making progress. They can also help adjust your plan if life events—such as a job change or market volatility—impact your finances.
Pros of Subscription Planning:
– Ongoing Support: You receive continuous advice and updates to your financial plan.
– Holistic Approach: The planner will consider all aspects of your financial life, from retirement to taxes, and adjust strategies as needed.
– Flexibility: Because you’re paying a subscription, you can reach out to your planner whenever issues arise without worrying about extra fees.
Cons of Subscription Planning:
– Higher Long-Term Cost: Over time, subscription fees can add up and may exceed the cost of a one-time financial plan.
– Commitment Required: You need to be comfortable with a long-term relationship with your planner, which might not be necessary if your financial needs are simpler.
How to Choose the Right Model for You
When deciding between hourly, project, and subscription financial planning, it’s important to consider your unique circumstances and financial goals. Here’s a breakdown to help guide your decision:
- Hourly Planning is ideal if you have:
- Specific financial questions or issues to address.
- A desire to maintain control over your finances with occasional professional input.
- A need for advice on one-time or short-term financial decisions, such as managing a sudden windfall or assessing a potential investment.
- Project Planning is ideal if you:
- Want a comprehensive financial plan to achieve long-term goals.
- Have a complex financial situation that requires tailored solutions.
- Are going through a major life event, like a divorce or career change, and need a complete financial analysis.
- Subscription Planning is ideal if you:
- Want ongoing, comprehensive financial support.
- Are navigating a constantly changing financial landscape.
- Need regular check-ins and updates to ensure you’re staying on track with your goals.
Cost Considerations
Each of these models has a different cost structure, so your budget will play a role in deciding the best fit for you.
– Hourly Financial Planning typically ranges from $150 to $400 per hour, depending on the planner’s expertise and location. This can be cost-effective for one-time consultations but may become expensive if you need regular advice.
– Project Financial Planning often costs between $2,000 and $10,000, depending on the complexity of your finances and the scope of the plan. While the upfront cost is higher, this model offers a comprehensive overview that can set you up for long-term success.
– Subscription Financial Planning usually consists of monthly or quarterly fees, which range from $100 to $500 per month. Over time, these fees can add up, but the benefit of having ongoing support and regular adjustments to your financial plan can be invaluable, especially if you have complex or evolving financial needs.
Conclusion: Which Model is Best for You?
The right financial planning model depends on your personal needs, financial goals, and the level of ongoing support you’re seeking. For specific, one-time advice, hourly financial planning offers flexibility and control. If you need a comprehensive roadmap for the future, project financial planning provides a tailored solution. For those wanting a financial partner to guide them through life’s ongoing decisions, subscription financial planning offers continuous support and peace of mind.
By understanding the benefits and limitations of each model, you can choose the approach that best aligns with your financial goals and lifestyle. Whether you need a quick check-in, a long-term plan, or a partner for the journey, there’s a financial planning model that’s right for you. Once you decide which model works best for you, check out organizations like NAPFA or XY Planning Network to find advisors that offer these types of services.
Sara Zuckerman, CFP®, CDFA® is the founder of Reset Financial Planning located in Scottsdale, AZ. She supports women across the country with a focus on helping divorcees and widows align their financial resources with their values to plan for the next chapter of their lives.
If you are interested in learning about how Reset Financial Planning can help you take charge of your finances as a newly single woman, please contact us at or schedule a free 20-minute consultation.
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Disclaimer: This article is provided for educational, general information, and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for the purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Reset Financial Planning, LLC, and all rights are reserved.
