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If you consider yourself a DIY (do it yourself) kind of person, you’re not alone. Millions of Americans successfully start and complete DIY projects every day.
But just because you decide to do a project yourself doesn’t mean you have to learn how to do the task on your own. In fact, most DIY projects start with education in the form of instructional videos, articles, books, or even live demonstrations.
The same holds when it comes to managing your personal finances and investing. If you consider yourself a DIY investor and are comfortable managing your own money, you may not want to hire a traditional financial advisor and turn over financial decision-making to someone else.
Fortunately, a new breed of financial advisors offering advice-only services has emerged as a popular choice among DIY investors interested in professional guidance at a very attractive cost.
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Advisors Who Offer “Advice-Only Services” vs. “Advice-Only Advisors”
As you evaluate financial advisors who offer “advice-only” services, it’s worth noting a distinction between advisors who may offer multiple compensation models for their services, with “advice-only” among them vs. advisors who hold themselves out as “advice-only advisors” and exclusively act in an advice-only capacity.
When financial advisors provide advice-only financial planning services and investment guidance, it’s their clients, not the advisors, who are responsible for implementing the recommendations independently. Because these advisors do not manage your investments for you, the cost of hiring a financial advisor offering advice-only services is often considerably less than hiring a financial advisor and paying a percentage of assets under managment, especially for people with large investment portfolios.
“Advice-only advisors” are Registered Investment Advisors (RIAs) regulated by the Securities and Exchange Commission (SEC) or by state regulators where their services are available. Many advice-only financial advisors will hold their Certified Financial Planner certification and will likely charge an hourly or flat fee for their services.
While you’ll be responsible for implementing recommendations on your own, some advice-only financial advisors offer technology and tools to make it easier for you to follow their guidance. Before hiring an advice-only advisor or an advisor who offers advice-only services, be sure to ask if they offer resources to help streamline your DIY efforts.
Should I Hire a Financial Advisor Who Offers Advice-Only Services?
If you consider yourself a DIY investor, you may still desire the benefit of professional guidance a financial advisor who offers advice-only services can provide to help you make smart decisions with your money. Or, if you’re looking for a second opinion regarding investment decisions or a financial plan you’ve prepared on your own, an advice-only financial advisor can review your work and offer feedback and recommendations to help ensure you’re on track to achieve your financial goals.
How to Find Financial Advisors Who Offer Advice-Only Services
📍 Click on a pin in the map view below to discover financial advisors who offer advice-only services and can work with you to develop a personalized financial plan. Or click the Grid option to view these advisors in a directory.
📍Double-click or pinch pins to view more.
Advisors in the Spotlight This Month:
What Questions Should You Ask Before Seeking Advice-Only Services?
To help you find the right financial advisor who offers advice-only services for your individual needs, it’s best to ask the right questions to determine if you’re a good fit to work together.
We asked financial advisors who offer advice-only services in the Wealthtender community for their thoughts on good questions to ask.
Eric Simonson, CFP®, CRPC®, CLTC® Advice-Only Financial Planning For Everyone
With an advice-only advisor, you fortunately do not need to ask them the usual questions you would a typical advisor such as 1) What hidden fees do you charge? 2) Do you sell products and make commissions? 3) Are you a fiduciary?
You can rest assured that with an advice-only model, you are receiving some of the fairest, most transparent advice available in our industry. So, the questions you should ask should be tailored more towards your specific situation.
For example, if you have student loans, ask them about their knowledge around student loans and typical strategy for how to tackle that debt. Or, if you own rental properties, how familiar are they with them and what recommendations do they usually provide there? Also make sure it is a good personality fit so ask about hobbies, communication style, etc.
Eric Simonson, CFP®, CRPC®, CLTC® | Abundo Wealth
Andrew Dressel, CFP®, CRPC®, APMA® Advice-Only Financial Planning For Everyone
What range of subjects do you work on with your clients? Do those areas of advice align with the needs that you are trying to address? How are your fees determined?
Andrew Dressel, CFP®, CRPC®, APMA® | Abundo Wealth
How does an Advice-Only Financial Advisor Compare to a Traditional Financial Advisor?
Beyond not managing their clients’ investments and earning a fee for this service, how else do advice-only financial advisors differ from traditional advisors? Should you expect the same services other than investment management? We asked advice only financial advisors what they think.
Andrew Dressel, CFP®, CRPC®, APMA® Advice-Only Financial Planning For Everyone
I would say that you should get the same if not more advice from an advice-only financial advisor than you would from a fee-only or commission-based financial advisor. This is because an advice-only financial advisor isn’t tied to a product outcome.
Traditional Financial advisors use financial advice to drive to certain outcomes or products that they receive a benefit or compensation from. The scope of the relationship with and advice-only advisor is based on depth and breadth of the advice that you get.
Andrew Dressel, CFP®, CRPC®, APMA® | Abundo Wealth
Eric Simonson, CFP®, CRPC®, CLTC® Advice-Only Financial Planning For Everyone
Every advisor is going to be a little unique in terms of their service offering, but on the whole you can expect advice-only advisors to be much more comprehensive with their advice since their income is in no way tied to the advice they provide. So, they are really free to ‘go anywhere’ with their guidance/advice.
Eric Simonson, CFP®, CRPC®, CLTC® | Abundo Wealth
Expert Insights: Should I hire an advice-only financial advisor or a traditional advisor?
Danielle Miura, CFP®
“Advice-Only firms ensure transparency of compensation and minimize conflicts of interest. At Spark Financials, we provide financial advice to empower our clients to be self-reliant and visualize their financial future. We are the navigator, and our clients are the driver.
Our firm is set up to not hold or have access to our client’s assets; therefore, our clients are protected from hidden fees. When a financial advisor manages assets, many clients are not able to see the direct impact of fees taken out of their accounts over time.
We also do not refer clients to someone who can manage their assets, preventing any kickback or markup compensation. We minimize conflicts of interest and fees for our clients so they can reach their goals faster and safer. Instead of managing our client’s assets to make them rely on us, we educate our clients so they can eventually be independent. Our goal is to be as transparent as possible; this means no commission and no hidden fees.”
– Danielle Miura, CFP®, Financial Advisor
What to Read Next…
Are You a Financial Advisor Who Offers Advice-Only Services?
👋 Hi there! We’re excited to help more people understand the benefits of working with advice-only financial advisors and advisors who offer advice-only services. And we want to help connect people to the best financial advisors for their individual needs. If you offer advice-only services, we encourage you to join our growing community of financial advisors featured on Wealthtender so we can add you to this guide soon. Click here to learn more and get started.
About the Author
About the Author
Brian Thorp
Brian is CEO and founder of Wealthtender and Editor-in-Chief. He and his wife live in Austin, Texas. With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress. Learn More about Brian
