Hourly Financial Planning vs. AUM: Which Is Right for Your Retirement
Should you pay by the hour or a percentage of assets for retirement advice? Learn the difference between hourly financial planning and AUM-based management to find the right fit for your retirement goals.
Understanding How Financial Advisors Get Paid
When planning for retirement, it helps to understand how financial advisors charge for their services. Some charge an hourly or flat fee for their time and expertise. Others follow an AUM model, where fees are based on a small percentage of the investments they manage.
Both models can work well depending on how involved you want to be, how complex your retirement picture is, and how much ongoing support you prefer.
At Focus Planning Group, I use both approaches. Some clients choose hourly planning for targeted retirement advice. Others prefer an AUM-based relationship for ongoing wealth management throughout retirement.
What Is Hourly Financial Planning
Hourly financial planning lets you pay only for the time and advice you need. It’s flexible, transparent, and ideal for retirees or pre-retirees who want professional input without a long-term contract.
Common reasons clients schedule hourly sessions include:
Each session ends with clear, written recommendations you can put into action on your own.
This approach works best for:
Learn more about Hourly Financial Planning
What Is AUM-Based Financial Planning
AUM means “Assets Under Management.” Under this model, you pay a percentage of your managed assets each year in exchange for continuous management, monitoring, and advice.
In an AUM relationship, I:
AUM-based planning fits clients who want:
Comparing Hourly and AUM for Retirement Planning
|
Feature
|
Hourly Financial Planning
|
AUM-Based Planning
|
|---|---|---|
|
Fee Structure |
Pay per hour or per project |
Annual percentage of managed assets |
|
Best For |
Independent investors, one-time reviews |
Long-term partnerships, ongoing guidance |
|
Commitment |
No ongoing obligation |
Continuous relationship |
|
Services |
Focused advice and written plan |
Full portfolio management and comprehensive planning |
|
Control Over Assets |
You manage your own accounts |
Advisor manages assets for you |
|
Meeting Frequency |
As needed |
Regularly scheduled reviews |
|
Cost Predictability |
Clear and upfront |
Varies with portfolio value |
|
Flexibility |
High |
Moderate |
|
Ongoing Adjustments |
Client Drive |
Advisor Driven |
How to Choose the Right Fit for Your Retirement
Ask yourself:
The Focus Planning Group Approach
Every retirement plan is unique. That’s why I offer both structures.
Some clients prefer hourly planning to confirm their strategy before retiring. Others want a long-term relationship where I handle their portfolio, cash flow, and income strategy.
My goal is to help you decide which model supports your goals, comfort level, and retirement timeline. I believe in clear advice, transparent pricing, and strategies that work in the real world.
How the Process Works
Step 1:
Schedule a Complimentary Intro Call
We begin with a brief 15-minute conversation to understand your goals and determine if this model aligns with your needs. There’s no prep or pressure, just clarity on next steps.
Step 2:
Choose Your Planning Format
You Can Choose Between:
– Hourly Planning: $300 per hour
For focused help on a specific topic: investment review, tax planning, or retirement.
– Full Service AUM Model
The cost for financial planning, our proprietary Focus on Retirement Blueprint System, and investment management services starts at 1% per year and goes down for every million you have invested with us at Charles Schwab.
Step 3:
Meet and Review Your Plan
We’ll meet via Zoom to review your full financial picture and discuss strategies that align with your goals. You’ll walk away with a written action plan, clear next steps you can take on your own or with your accountant.
Step 4:
Ongoing Support, Only When You Want It
There’s no retainer, no lock-in. Many clients check in annually or as life changes occur, such as retirement, inheritance, home sale, or business transition. You decide when it’s time for another review.
Which Model Fits Your Retirement Plan Best
The right choice depends on the level of involvement you want in managing your retirement.
If you enjoy independence and only need advice occasionally, hourly planning may be ideal.
If you want professional oversight of your investments and income strategy, an AUM relationship offers that.
Both options start the same way: with a simple conversation about your retirement goals.
See What our Hourly and Flat Fee Financial Planning Clients Are Saying About Us
Why Clients Choose Focus Planning Group
For over 25 years, we’ve helped clients simplify their financial decisions and approach retirement with confidence. Our philosophy is what we call Elegant Simplicity, which helps you see the big picture clearly and make informed decisions without unnecessary complexity.
As a fee-only fiduciary, our only goal is to help you make the best possible choices for your future.
You’ll get professional advice that’s accessible, practical, and rooted in decades of experience.
Book Your Free Intro Call to See if We’re a Good Fit!
In just 15 minutes, we’ll assess your specific situation and determine if it’s the right fit. It’s completely complimentary.
This is a no pressure call where you don’t need to prepare. It’s for folks who wants clear direction and answers to their retirement questions. Fill out the form and book a time that works for you.