Fee-Only Financial Advisers: What They Cost and Why It Matters

For a single planning decision, start with an hourly or project quote. For recurring household planning, compare a fixed retainer with an asset-based service that includes the same work. Fee-only means client compensation under the applicable professional standard; verifying that claim and pricing the actual assignment are the two steps to a useful comparison.

Start with the work you need completed, then ask each candidate to quote that same assignment. A fixed annual membership, a one-time plan, and ongoing investment management can have similar prices while providing very different services.

What fee-only means—and who is covered

NAPFA defines a fee-only adviser as one compensated solely by the client, without the adviser or a related party receiving compensation contingent on buying or selling a financial product. Its explanation describes hourly, retainer, asset-based, and flat-fee arrangements. Fee-only therefore does not mean only one pricing method. NAPFA definition, membership standards.

CFP Board’s standard for CFP professionals is more detailed than simply asking whether the individual receives a commission. The professional and firm must receive no sales-related compensation, and related parties must receive none in connection with the professional services provided to clients. That category includes certain compensation beyond ordinary sales commissions. CFP Board compensation guidance.

Ask how the individual, firm, and connected businesses earn money from your recommendations. Have the adviser identify any product, referral, or affiliated-business compensation and point to the corresponding disclosure. Check that explanation against the fee-only representation.

Fee-based and fiduciary describe different questions

Fee-based commonly describes a relationship that can combine client fees with commissions or other sales-related compensation. Request a plain-language explanation of each payment source rather than relying on the label alone.

Fiduciary duty concerns the standard of conduct: investment advisers must act in clients’ best interests. Review the compensation arrangement alongside the firm’s explanation of conflicts and how it handles them. Investor.gov adviser guide.

Ask an asset-based adviser how they evaluate decisions that reduce managed assets, such as debt repayment. Ask an hourly adviser how additional hours are approved. Ask a fixed-fee provider what work falls outside the package. Each question targets the incentive created by that pricing method.

Calculate the price for the specific assignment

Request the same scope from each candidate. For a retirement assignment, that might mean a spending projection, Social Security analysis, account-withdrawal plan, and a written review of assumptions. Establish whether implementation and later updates are included.

Here are hypothetical quotes, not market averages:

Pricing model	Example calculation	Scope question
Hourly	$275 × 6 hours = $1,650	What approval is needed before exceeding the estimate?
One-time project	$2,400	Does the price include a follow-up after implementation?
Monthly planning	$225 × 12 = $2,700	Is the agreement cancellable monthly or an annual commitment?
Asset-based	0.80% × $500,000 = $4,000	Which accounts and cash balances are billable?

A $2,700 annual retainer equals 2.70% of $100,000 or 0.27% of $1 million. Record the dollar cost and the work included. A household needing extensive planning can have a small portfolio; a large portfolio can require little work beyond management. Compare the assignment before using the percentage to choose.

Separate the adviser’s bill from fund expenses, custodian charges, taxes, and optional specialist services. A fee-only arrangement can still contain investments and account services with their own costs. Ask for a first-year estimate, a recurring-year estimate, and the cost of ending the arrangement.

Facet Core: price, meetings and commitment

Facet’s pricing page lists a standard Core price of $2,600 annually, checked November 3, 2026. Core includes 3 designated planning meetings in year 1 and 1 annual meeting in later years, plus investment management. Compare that schedule with the frequency of advice you expect to need.

The membership is an annual, non-refundable agreement, payable quarterly or annually, with a $300 enrollment fee waived with annual payment. Choose the billing schedule after budgeting for the full year, and read the cancellation and renewal terms before enrolling.

Budget for applicable custodian and third-party charges as well as the membership. Facet explains that those providers can deduct fees from an account. Service explanation.

Use published prices to prepare questions, then obtain the actual quote for your needs. Confirm renewal terms and the services available in the tier you are considering; do not infer that a higher-tier feature appears in every membership.

Verify the claim using documents and public records

Ask for Form CRS where applicable, Form ADV Part 2A, the relevant professional’s supplement, and the engagement agreement. The SEC describes Form CRS as a standardized relationship summary covering services, fees, conflicts, standards of conduct, and reportable disciplinary information. Investor.gov Form CRS guide.

Use this sequence:

1. Match the firm’s legal name to its public registration record in Investment Adviser Public Disclosure.
2. Read the compensation and additional-expense discussion, including commissions, affiliations, and referral arrangements.
3. Ask the adviser to explain any passage that appears inconsistent with the fee-only claim.
4. Confirm the specific services, payment schedule, and termination terms in the signed agreement.

Form ADV Part 2A Item 5 addresses fees and compensation. Other sections can supply context on business activities, affiliations, and arrangements that affect recommendations. A search for the word “commission” is a starting point, not a complete legal conclusion. SEC Form ADV instructions.

Also verify claimed credentials separately. Membership in a professional association, an active professional certification, and regulatory registration are different records. Keep the date and result of each check.

Use directories to build a shortlist

Use NAPFA’s directory to shortlist candidates by fee structure and technical focus. Then verify registration, credentials, disclosures, and engagement terms before choosing a professional.

The Garrett Planning Network describes hourly and project-based fee-only planning without minimum asset requirements for those engagements. It is a useful place to seek a quote for a defined assignment while retaining investments at your existing custodian.

Give candidates a short description of the problem without sending account numbers or sensitive records before you have verified the firm and its secure intake process. Ask whether your circumstances fit the practice and who would perform the work.

Judge value through completed work

A useful engagement has observable outputs: a decision analysis, a written plan, a beneficiary review, an implementation schedule, or continuing monitoring within an agreed scope. Determine who coordinates with your tax preparer, attorney, or insurance professional and whether that coordination is included.

Schedule a review against the agreed deliverables: completed analysis, implementation progress, follow-up, and total charges. Renew an ongoing engagement when that work continues to justify its price. For a completed one-time task, request an update only when the assumptions or decision change.

Sources

• NAPFA: fee-only compensation and standards.
• CFP Board: compensation representations.
• SEC: Form CRS and adviser brochure instructions.
• Facet: published membership prices.
• Garrett Planning Network: service model.