Why Hourly Financial Advice Could Revolutionize My Industry

Before I built my career around providing hourly financial advice, I remember working with a client who meticulously managed his investments. Still, he felt uneasy.

He didn’t need someone to control his portfolio—he needed someone to explain the “why” behind every financial move. Every advisor he met wanted to take over his assets or charge fees that didn’t match the advice he required. I realized something was wrong with the traditional financial advisory model.

The industry-standard fee structure of charging a percentage of assets under management (AUM) felt outdated and restrictive. Clients were locked into paying for services they didn’t need, with fees ballooning as their portfolios grew—regardless of how much guidance they received.

I knew there had to be a better way. That’s why I embraced the fee-only model, a solution for an industry plagued with conflicts of interest.

And this shift has the potential to truly revolutionize financial advising.

Conflicts of Interest in Financial Advising

When discussing conflicts of interest, I’m referring to a fundamental misalignment between the advisor’s paycheck and the client’s best interests.

In the AUM model, advisors typically charge 1% of a client’s total portfolio value annually—regardless of the effort or advice given. This creates a questionable incentive: the advisor’s earnings are directly tied to the portfolio size, not the quality of advice they provide.

For instance, an AUM advisor might hesitate to recommend paying off a large debt or withdrawing funds for a necessary expense because it would reduce the portfolio—and, in turn, their income. The client’s financial goals take a back seat to the advisor’s desire to keep assets invested, which creates tension between what’s best for the client and what benefits the advisor.

Hourly financial advice eliminates this particular conflict. I’m not paid to grow your portfolio. Instead, I’m paid to give you the best advice possible, whether that means investing, saving, or making a significant purchase. This model puts your needs first—always.

How Hourly Financial Advice Aligns Interests

Hourly financial advice aligns the advisor’s interests with the client’s without the baggage of hidden incentives. 

According to a 2020 study published by financial strategist Michael Kitces, traditional AUM advisors can generate revenue at rates implying hourly fees between $350 and $800, and for top earners, this can be as high as $1,600 per hour​. This structure encourages advisors to focus on managing large portfolios rather than offering personalized advice that meets specific client needs, such as paying debt or funding a major purchase.

In contrast, hourly financial advice is transparent and straightforward—you pay only for the advice you need when you need it. This model allows for greater flexibility, especially for DIY investors or those in transitional life phases who may not need continuous portfolio management but require expert guidance on critical financial decisions.

The advice isn’t tethered to portfolio size, which means clients receive actionable recommendations based on their goals, not on how much they have under management.​

By paying for time and expertise, clients can focus on solving real financial problems without worrying about whether their advisor has ulterior motives. When I work with clients, my only job is to provide them with the best possible advice, whether recommending an investment strategy, planning for retirement, or helping them navigate a significant financial event. This model ensures that the client’s priorities come first—always.

What This Means for You

Over the years, I’ve worked with various clients, from business owners exiting their companies to retirees faced with complex estate planning. What they all had in common was a need for clear, personalized advice.

One client, a small business owner, sold his company and suddenly faced a significant exit windfall. In a traditional AUM model, he would have paid a substantial percentage of that windfall every year in fees despite not needing constant portfolio management. Instead, we developed a strategy for managing the funds, maximizing tax efficiency, and securing his family’s financial future. He paid for the advice he needed and kept control of his assets.

This is where hourly advice makes the biggest difference: clients can access personalized, actionable financial strategies without the long-term financial drain of AUM fees.

Let’s Work Together

Whether you’re approaching retirement, selling a business, or simply needing a second opinion, hourly financial advising offers the flexibility and empowerment that traditional models can’t match. If you’re interested in learning more, please check out my advising website.