What Is Advice Only Financial Planning and How Does It Work?

Have you ever wondered if your financial advisor truly works for you or for the products they sell?

The way financial professionals are compensated can make a big difference in the advice you receive. Many advisors earn commissions from investment or insurance products, while others charge asset based fees that grow as your portfolio grows. But there is another approach that is gaining attention: advice only financial planning.

This model focuses on providing guidance, not selling products, and it may be one of the most transparent and client centered ways to get financial advice.

Advice only financial planning means you pay a planner directly for their time, expertise, and guidance, not for managing investments or selling products.

There are no hidden commissions, no product quotas, and no incentives to steer you toward a specific investment or insurance option. Instead, you receive unbiased recommendations based solely on your goals, values, and financial situation.

Think of it like hiring a CPA for tax advice or an attorney for legal work. You pay for professional guidance, not for the sale of a product.

Here is a quick breakdown of how advice only planning compares to the more common approaches.

Commission based: The advisor earns money from selling investment or insurance products. This can create conflicts of interest because their income depends on what you buy.

Commission and fee model: A hybrid structure that includes both client fees and commissions. Even if you pay a planning fee, the advisor may also receive product-related compensation from investments or insurance. 

Fee only: Advisors charge only fees with no commissions, usually as a percentage of assets under management. While transparent, it can still favor clients with larger portfolios.

Advice only: The planner charges hourly or project based fees for advice. You keep control of your accounts and can implement the plan on your own or with other professionals you choose.

Advice only planning is especially helpful for:

• Individuals and couples nearing retirement who want objective guidance without ongoing management fees. 
• DIY investors who prefer to handle their own investments but want professional input on strategy and tax planning. 
• Retirees who need one time help with Social Security timing, withdrawal strategies, or estate planning coordination. 
• Families seeking comprehensive planning without feeling pressured into financial products. 

In other words, it is ideal for people who value clarity and control.

Transparency: You know exactly what you are paying and what you are getting.

No sales pressure: Your advisor’s only motivation is to give you the best possible advice.

Flexibility: Work with a planner for a one time project or periodic checkups instead of committing to long term fees.

Comprehensive insight: You can get help with budgeting, taxes, retirement income, estate planning, and more, not just investments.

This approach aligns your financial plan with your life, not just your portfolio.

Your first meeting focuses on understanding your goals, values, and current financial picture. From there, the planner builds a tailored plan addressing key areas such as retirement income, risk management, and tax strategy.

Once the plan is delivered, you decide how to implement it. You can handle changes yourself, work with an investment firm of your choice, or schedule periodic updates as your situation evolves.

This flexibility ensures your plan stays relevant without locking you into ongoing fees.

Advice only financial planning is built around one core idea:  financial planning should be transparent, straightforward, and built around what matters most to you 

At Custom Fit Financial, we specialize in advice only fee only retirement planning for individuals and couples age 55 and over. We offer hourly and project based financial planning with no sales pressure or product commissions. Whether you’re in Cedar Rapids, Iowa City, or working with us virtually across the United States, we help you make confident informed decisions about your retirement.  

Interested in learning more about advice only planning? Schedule your free intro call today.