Flat Fee Financial Planning: How Project-Based Pricing Works for Clients and Advisors

Why Flat Fee Financial Planning Is Changing How People Get Advice

Most people think financial advisors only work with millionaires. That’s not true. In fact, a growing number of advisors are helping middle-income families-people with $250,000 to $1 million in assets-who need real advice but can’t afford the typical 1% annual fee on their investments. That’s where flat fee financial planning comes in. Instead of paying a percentage of your portfolio every year, you pay a fixed price for a specific project: creating a retirement plan, paying off student loans, or setting up a college fund for your kids. You know exactly what you’re paying upfront. No surprises. No hidden commissions.

How Project-Based Pricing Is Different From AUM or Hourly Rates

Traditional financial advisors often charge based on assets under management (AUM)-usually 0.5% to 1.5% of what you have invested. For someone with $500,000, that’s $2,500 to $7,500 a year, no matter how much work the advisor actually does. If you’re young, have simple investments, and just need a one-time plan, you’re paying for ongoing service you don’t need.

Hourly rates are better, but they’re unpredictable. Advisors might charge $150 to $400 an hour. A full financial plan could take 10 to 20 hours. That’s $1,500 to $8,000-but you won’t know the final cost until it’s done. And if the project runs over, you get billed more.

Project-based pricing fixes both problems. You agree on a fixed price for a defined outcome. Maybe it’s a complete retirement plan, including tax strategies, Social Security timing, and estate documents. The advisor gives you a quote: $7,500. You pay it. They deliver the plan. Done. No monthly fees. No asset-based drag. Just clear value for clear work.

What Projects Are Commonly Priced This Way?

Not every financial need fits a flat fee. But many do. Here are the most common projects advisors offer under this model:

• Comprehensive financial plan: $5,000-$15,000. This includes cash flow analysis, debt strategy, investment allocation, retirement projections, insurance review, and estate planning documents.
• Student loan repayment strategy: $500-$1,200. Helps you choose between income-driven plans, refinancing, or forgiveness programs.
• Retirement income plan: $3,000-$7,000. Focuses on when to claim Social Security, how to withdraw from accounts tax-efficiently, and how long your money will last.
• College funding plan: $1,500-$4,000. Covers 529 plans, scholarships, aid strategies, and timing of contributions.
• Cash flow and budgeting review: $1,000-$2,000. For people overwhelmed by monthly expenses, debt, or irregular income.
• Business owner financial plan: $6,000-$12,000. Addresses income volatility, business vs. personal expenses, retirement accounts for owners, and succession planning.

These aren’t guesses. Advisors use real data. For example, Scholar Financial Advising tracks how many hours each project takes and adjusts pricing based on complexity-like whether you have multiple income streams, rental properties, or stock options. The more variables, the higher the fee. But you still know the price before you sign anything.

Why This Model Favors the Client (And the Advisor)

Flat fee planning removes a huge conflict of interest. If your advisor gets paid based on how much money you invest, they have an incentive to push you into more accounts-even if you don’t need them. That’s not advice. That’s sales.

With project-based pricing, the advisor only gets paid when they deliver value. Their goal isn’t to grow your assets. It’s to solve your problem. That makes them a fiduciary by default. They’re legally required to act in your best interest, not their own.

And it works for advisors too. Instead of chasing high-net-worth clients just to earn bigger AUM fees, they can serve more people with mid-range assets. The Garrett Planning Network, founded in 2000, now has over 400 advisors across 45 states who use this model. They’re not rich-most clients have under $1 million. But they’re getting real help. And advisors are building sustainable businesses without relying on Wall Street products.

The Hidden Cost of AUM: A Real-Life Example

Let’s compare two clients.

Bobby has $4.5 million in index funds. Simple. Low maintenance. He doesn’t need much advice. But under a 1% AUM fee, he pays $45,000 a year.

Sally has $750,000. But she’s a small business owner with two rental properties, two kids in college, a spouse with a 1099 income, and $180,000 in student loans. Her plan takes 30 hours. She needs tax optimization, insurance reviews, and cash flow modeling. Under AUM, she pays $7,500 a year-less than Bobby, even though she needs far more work.

With project-based pricing, Sally pays $8,000 for her comprehensive plan. Bobby pays $5,000 for a simple one-time review. Both get exactly what they need. No overpaying. No under-serving.

This model doesn’t just save money. It makes advice fair.

What Advisors Need to Get Right

Project-based pricing sounds simple. But it’s easy to mess up.

Some advisors underprice because they’re afraid to lose clients. They charge $4,000 for a plan that takes 25 hours at $150/hour. That’s $3,750 in labor. They break even-but they’re not making profit. And if the client asks for an extra spreadsheet or changes their mind about retirement age? They’re stuck.

Successful advisors use clear scopes. They document exactly what’s included: “This plan includes three revisions, a retirement projection model, and a tax strategy document.” Anything outside that? A change order. Extra fee. Simple.

They also track time. Not to bill more. But to improve. If a $6,000 plan consistently takes 22 hours, but they estimated 15, they adjust the price next time. It’s not about charging more. It’s about pricing accurately so they can keep helping clients without burning out.

AdvicePay found that 28% of advisors lost money in their first year using this model-because they didn’t scope properly. The fix? Start small. Offer one or two projects. Track every minute. Refine. Then expand.

Who Benefits Most From This Model?

It’s not for everyone. But it’s perfect for certain people:

• Young professionals with student debt and no savings yet. They can’t afford 1% of nothing.
• Self-employed people with irregular income. They need planning, not portfolio management.
• Divorcing or widowed individuals who need a one-time reset, not ongoing advice.
• Retirees with pensions who just need to know how to withdraw safely.
• Parents planning for college who want clarity, not constant check-ins.

Older clients who’ve worked with AUM advisors for years often dislike the idea of “paying per project.” They’re used to monthly statements and ongoing service. But many realize, after a few years, they never called their advisor. They just paid $5,000 a year for nothing.

That’s why many advisors now offer hybrid models: a flat fee for the initial plan, then a $150/month retainer for ongoing questions. That’s a sweet spot for clients who want support without being locked into asset-based fees.

The Future Is Transparent

Regulators are pushing for more transparency. The SEC’s 2022 Marketing Rule made it harder for advisors to hide how they’re paid. Clients are asking more questions. And advisors who answer clearly are winning.

According to AdvicePay, 68% of new advisory firms launched in 2023 use flat fee or project-based pricing. Five years ago, it was 39%. By 2027, BlackRock predicts 45% of the advisory market will be fee-for-service. That’s up from 32% in 2023.

Why? Because clients are tired of being treated like accounts. They want advisors who care about their goals, not their balances. They want to know what they’re paying for. And they want to feel like they’re getting real value-not a sales pitch dressed up as advice.

Flat fee financial planning isn’t a trend. It’s the next step in making advice honest, clear, and fair.

How to Find a Project-Based Financial Advisor

Not every advisor offers this. Here’s how to find one:

1. Look for members of the XY Planning Network or Garrett Planning Network. These are networks built around fee-only, project-based advice.
2. Ask: “Do you charge based on assets under management, or do you offer fixed-fee planning?” If they hesitate, move on.
3. Request a sample scope of work. A good advisor will send you a PDF showing exactly what’s included in their $7,500 plan.
4. Check if they’re a fiduciary. They should say it outright. If they don’t, they’re not.
5. Ask about change orders. What happens if your situation changes after you pay? A good advisor will have a clear policy.

Don’t be afraid to ask for references. Talk to two or three past clients. Ask: “Did you feel like you got your money’s worth?” If the answer is yes, you’ve found someone who does this right.