Choosing a fee‑only planner
Paid by you alone. Check first.
“Fee-only” and “fee-based” are not the same. Only fee-only means no commissions.
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1. How advisers get paid
| Label | Who pays them | Conflict to watch |
|---|---|---|
| Fee-only | Only you | Fewest — but a percentage fee still rewards keeping your money with them |
| Fee-based | You, plus commissions on products | May earn more by selling you something |
| Commission | Product companies | Most — paid per sale |
Fee-only planners charge in one of four ways. Typical figures from the 2024 Kitces Research survey of 621 advisers:
- A percentage of assets: a median of 1% a year on portfolios up to $1 million, lower on larger ones.
- Hourly: a median of $300 an hour.
- A yearly subscription: a median of $4,500 a year.
- A one-time plan: around $3,000 for a comprehensive plan.
2. What it costs over time
An illustration, not a forecast. A good plan can be worth far more than it costs — the point is to know the number before you sign.
3. How to check an adviser
- Look them up at adviserinfo.sec.gov. Read the firm’s Form ADV Part 2, which spells out fees, conflicts and any disciplinary history.
- Search FINRA BrokerCheck to see whether they’re also licensed to sell products, which is a sign they may earn commissions.
- Ask for the fiduciary commitment in writing, covering all advice, at all times.
- Confirm who holds your money. It should sit at an independent custodian in your name, not with the adviser.
4. Questions to ask a federal retiree’s planner
- “How would you handle my TSP?” Its fees are among the lowest anywhere. A planner who pushes a rollover first deserves a hard look — see the TSP rollover pitch.
- “Do you know FERS, FEHB and the survivor annuity?” These decisions often matter more than investments.
- “Do you earn anything from annuities or insurance?” See how to shop for an annuity.
- “What would the plan cost if I just paid hourly?”
5. Frequently asked questions
What is a fee-only financial planner?
An adviser paid only by the client — through a percentage of assets, an hourly rate, a subscription or a project fee — who accepts no commissions from selling products. Fee-based advisers, by contrast, charge fees and can also earn commissions.
How much does a fee-only financial planner cost?
In the 2024 Kitces Research survey, the median fee was 1% a year of assets on portfolios up to $1 million, $300 an hour for hourly advice, and $4,500 a year for subscription planning. A one-time comprehensive plan runs around $3,000.
How do I check a financial adviser’s record?
Search the SEC’s adviser database at adviserinfo.sec.gov and read the firm’s Form ADV Part 2, then search FINRA BrokerCheck. Both are free and show registrations, fees, conflicts and disciplinary history.
Should a federal retiree move the TSP to an adviser?
Not by default. The TSP’s fees are very low, and moving it can add fees and commissions. Get the advice first and decide on any rollover separately.