What is Hourly Financial Planning?
When it comes to financial planning, many people envision long-term, ongoing engagements with a financial advisor that may include ongoing fees or commissions. However, there’s another option that’s becoming increasingly popular—hourly financial planning. This flexible and cost-effective approach allows you to receive expert financial advice as you need it, without the commitment of a full-service, ongoing plan.
But what exactly is hourly financial planning, and how can it benefit you? Let’s dive in.
Understanding Hourly Financial Planning
Hourly financial planning is a service model where a financial advisor charges by the hour for their time and expertise. Unlike traditional financial planning, where you pay a fixed fee or a percentage of assets, hourly planning allows you to pay only for the specific advice or services you need at a given moment. This can include anything from budgeting and debt management to retirement planning and investment advice.
This model is ideal for people who need help with certain aspects of their finances but don’t require a long-term, comprehensive financial plan. Whether you're going through a life transition like a career change or retirement, or simply need help understanding how to budget better, hourly planning gives you the flexibility to get expert guidance without a long-term commitment.
When is Hourly Financial Planning a Good Fit?
Hourly financial planning is an excellent option for several types of individuals:
Specific, One-Time Financial Needs If you need guidance on a specific financial issue—like understanding how much you can afford to save for retirement, managing debt, or structuring your investments—hourly financial planning allows you to access expertise as needed without paying for a comprehensive, ongoing relationship.
Limited Budget Many people may be interested in financial planning but don’t want to commit to the higher costs of traditional advisory services. Hourly planning offers a more affordable way to get professional advice when you need it, allowing you to focus your spending on the areas that matter most to you.
Life Transitions Major life events such as divorce, a new job, or the sale of a home can trigger financial questions that are best addressed by a professional. Rather than committing to a full financial plan, you can seek hourly advice to help you navigate these transitions without being locked into an ongoing relationship.
Ongoing or Periodic Check-Ins Some clients prefer a more hands-off approach to financial planning but still want to periodically check in to ensure their financial strategies are on track. Hourly planning allows you to meet with your advisor as often or as infrequently as you need.
The Benefits of Hourly Financial Planning
1. Flexibility and Control:
With hourly financial planning, you have more control over the services you receive. You can choose to meet with your advisor only when you need advice or guidance, meaning you’re not locked into an annual contract or retainer. This gives you the freedom to tailor your financial planning to your unique needs and priorities.
2. Cost-Effective:
Because you’re only paying for the time you use, hourly financial planning can be much more affordable than traditional models. For example, if you need help creating a budget or understanding the tax implications of a decision, an hourly advisor can help you solve your problem without the hefty price tag of ongoing services.
3. Objective Advice:
Hourly financial planners are often fee-only, meaning they don’t have any commissions or sales incentives tied to the products they recommend. This structure ensures that their advice is unbiased and focused solely on your best interests (Source: FPA)
4. Accessibility:
Hourly planning also makes professional advice more accessible to a wider range of people. Whether you have a complex financial situation or you simply need help with budgeting or tax planning, hourly financial planning offers a low-barrier way to get the advice you need.
Real-World Applications:
Tax Planning and Strategy
One of the most common ways people use hourly financial planning is for tax optimization. A financial planner can help you understand which strategies—such as tax-advantaged accounts or tax-loss harvesting—might be right for your situation.Investment Guidance
While hourly financial planning typically doesn’t involve comprehensive portfolio management, you can still receive advice on investment strategy, asset allocation, and the risks associated with different investment types.Retirement Planning
You can also get help with retirement planning on an hourly basis. Whether it’s determining how much to save, choosing the right retirement accounts, or evaluating different retirement scenarios, an advisor can help you plan for the future, even if you don’t need full-service retirement management.
Work with Pathways Financial Planning
If you're looking for personalized, actionable financial advice on an hourly basis, Pathways Financial Planning is here to help. Whether you need help budgeting, making investment decisions, or navigating major life transitions, our fee-only, hourly financial planning option ensures you get the expert guidance you need without any long-term commitment.
At Pathways Financial Planning, we are dedicated to providing you with clear, objective advice that fits your unique situation. With a CFP® guiding you through the process, you’ll receive the tailored financial insights you need to feel confident about your financial decisions.
Ready to take control of your financial future? Schedule a consultation with us today and start your journey toward a more secure financial life.
