3 Benefits of Hourly, Fee-Only Financial Planning

Quick answer: Hourly, fee-only financial planning means you pay a fiduciary planner only for the time spent on your questions, with no commissions and no percentage-of-assets fee. It has three main benefits:

• You can see exactly what advice costs.

• The advice is conflict-free, and you can verify that yourself.

• You get help at the moments when big decisions actually happen.

1. You can see the real cost of advice

Asset-based fees are easy to overlook because they're deducted quietly from your accounts. On a $750,000 portfolio, a 1% fee is $7,500 this year, and again next year, rising as your portfolio grows.

With hourly financial planning, the cost is tied to the work, not your balance. You get an estimate for a defined project up front, pay once, and decide whether the advice is worth it before you commit.

That approach is still uncommon. Kitces Research found 86% of advisory firms rely on AUM fees as their primary pricing method, and a 2026 Datos Insights survey for Envestnet found only 9% of advisors charge an hourly fee.

2. Fee-only advice is conflict-free, and you can verify it

"Fee-only" and "fee-based" sound alike but are very different:

• A fee-only planner is paid only by clients.

• A fee-based advisor can charge you a fee and also earn commissions on products sold to you.

How to verify:

• Look up any advisor's Form ADV on the SEC's Investment Adviser Public Disclosure site.

• Check for membership in vetted fee-only directories. FeeOnlyNetwork screens its members against the strict fee-only standard set by NAPFA, the National Association of Personal Financial Advisors.

3. Help at the moments decisions happen

Money decisions cluster around life events, not calendar quarters. Hourly planning fits a focused question at a turning point, such as:

• Leaving a job in your 50s: Does the Rule of 55 or a 72(t)/SEPP plan fit your situation?

• Changing careers or starting a business: How long can your savings bridge the gap?

• Covering a short-term cash need: Should you sell investments or borrow against assets?

Get the answer, then come back when the next decision arrives, with no retainer in between.

How Montgomery Financial Planning supports hourly, fee-only planning

• Built for hourly planning: You get a cost estimate before any work begins, and we never exceed it without your explicit approval. See our pricing page for current rates.

• Garrett Planning Network member: Founded in 2000, Garrett helps planners build fee-only, hourly-based firms, with a mission of making planning accessible to everyone, not just the wealthy. Every member must offer hourly and project planning at the core of their practice.

• FeeOnlyNetwork member: vetted as a fee-only fiduciary.

• Based in Arvada, working virtually: We mostly work with clients virtually, serving Arvada, the Denver metro, and clients in other states.

Frequently asked questions

What's the difference between a fee-only and a fee-based financial advisor?

A fee-only advisor is paid only by clients. A fee-based advisor may also earn commissions from selling financial products, which can create conflicts of interest.

Is hourly financial planning worth it if I have a large portfolio?

Often, yes. An asset-based fee grows with your portfolio, while an hourly fee depends on the complexity of your question. Larger portfolios can see the biggest savings.

How can I check whether a planner is truly fee-only?

Read the firm's Form ADV Part 2 on the SEC's Investment Adviser Public Disclosure site. Also look for membership in vetted fee-only networks such as FeeOnlyNetwork or the Garrett Planning Network.

Ready to start? Schedule a free 30-minute consultation to see if hourly, fee-only planning fits your needs.

Montgomery Financial Planning, LLC is a Registered Investment Adviser located and registered in the State of Colorado. Registration does not imply a certain level of skill or training. This article is for informational purposes only and does not constitute investment, legal, or tax advice.