A fee-only financial advisor costs about 1% of assets under management a year in 2026, with flat-fee retainers running $2,000 to $7,500 annually and hourly rates between $150 and $400 an hour. The AUM number is the one that gets advertised, but it usually stops at investment management — tax coordination, business succession planning, and treasury work for a growing company often get billed separately or folded into a flat annual fee instead.
- A fee-only financial advisor costs roughly 1% of AUM a year in 2026, or $2,000-$7,500 flat, or $150-$400 an hour.
- The AUM percentage rarely covers business-specific work like treasury management or succession planning.
- Flat-fee and hourly models often fit business owners better because a private business doesn't count toward AUM.
- Vital Investment Management is a fee-only, SEC-registered RIA serving Northern Colorado business owners.
Why this matters
The number that gets marketed — "1% of assets" — tells you almost nothing about what a fee-only financial advisor actually does for you. If you own a business, most of your net worth sits outside a brokerage account, in the company itself. An advisor who only bills a percentage of what they manage has little financial reason to spend hours on your treasury structure, your buy-sell agreement, or a transition plan that takes years to execute.
That's the gap Vital Investment Management is built around: fee-only advice for Northern Colorado business owners that covers treasury management, investment management, financial planning, and business transition and succession planning under one fee structure instead of three separate vendors.
How much does a fee-only financial advisor cost?
Three billing models cover almost every fee-only arrangement in 2026. Pick based on how much of your net worth is liquid and how much ongoing work you actually need.
| Fee Model | Typical Range (2026) | Best For |
|---|---|---|
| AUM percentage | About 1% of assets annually | Owners with substantial investable assets to manage long-term |
| Flat annual retainer | $2,000-$7,500 a year | Owners who want planning without tying cost to portfolio size |
| Hourly | $150-$400 an hour | A single decision, a second opinion, or a one-time plan review |
Verdict: if most of your wealth is still tied up in the business, a flat fee or hourly arrangement usually makes more sense than an AUM percentage that has little to work with yet.
AUM-based fee: about 1% a year
This is the default model for most investment-focused advisors, and it scales with the account. Larger balances often move into a lower tier, so a $2 million account frequently pays a blended rate below the standalone 1%. The catch: if your investable assets are small relative to your business equity, a 1% fee on a modest account buys very little advisor attention.
Flat-fee retainer: $2,000 to $7,500 a year
A flat annual fee decouples cost from portfolio size, which matters if your liquid assets are thin but your planning needs — cash flow, entity structure, a transition timeline — are not. This model is common among fee-only advisors who work with business owners specifically, since the value isn't just managing a stock portfolio.
Hourly fee: $150 to $400 an hour
Hourly billing works for a narrow question: should you set up a SEP IRA or a Solo 401(k), how should you structure a buyout of a partner, what's a reasonable next step before a sale. It's the cheapest entry point in dollar terms but doesn't cover ongoing management.
“An AUM fee is a percentage of your portfolio, not a fee for everything a business owner needs.”
Why fee-only advisor costs vary
- Assets under management — larger accounts often move into a lower percentage tier, shrinking the effective rate.
- Business complexity — multiple entities, 1099 contractors, or concentrated equity in the company add planning work an AUM fee doesn't automatically cover.
- Scope of engagement — investment management alone costs less than investment management bundled with treasury oversight and succession planning.
- Credentials and specialization — advisors holding both CFP and CPA credentials, or those focused specifically on business owners, often price differently than a generalist.
- Service frequency — quarterly check-ins cost less to deliver than an advisor who's meeting with you and your CPA multiple times a year during a transition.
Before you commit to any of these fee models, run the advisor through a short set of questions to ask before hiring a financial advisor — how they're compensated is only one of eight things worth confirming up front.
Get a fee-only cost estimate for your situation
A discovery call with Dillon Goodman covers your fee structure before you commit to anything.
Is a fee-only advisor cheaper than a commission-based advisor?
A fee-only advisor isn't automatically cheaper in dollar terms in 2026 — the real difference is that a fee-only cost is one visible line item, while commission-based compensation is folded into product expense ratios, insurance loads, or fund fees you rarely see itemized. That visibility is the reason many business owners default to fee-only advisors serving Northern Colorado business owners once they've been sold a commission product they didn't fully understand.
What's the difference between fee-only and fee-based?
Fee-only means 100% of the advisor's compensation comes directly from you, with no commissions, referral fees, or third-party payments in the mix. Fee-based advisors charge a client fee and can still collect commissions on products they sell, which is where most industry conflict-of-interest complaints originate.
Do fee-only advisors charge for a first consultation?
Most fee-only advisors, including Vital Investment Management, offer a confidential discovery call before any fee is charged in 2026. That first conversation is meant to establish fit and scope — it's not the pitch, and it's separate from any of the firm's educational tools or guides.
FAQ
How much does a fee-only financial advisor cost per year?
A fee-only financial advisor typically costs about 1% of assets under management a year in 2026, or a flat retainer of $2,000 to $7,500, depending on the billing model. The right choice depends on how much of your net worth is liquid versus tied up in a business.
What is a reasonable hourly rate for a fee-only advisor?
A reasonable hourly rate for a fee-only advisor runs $150 to $400 an hour in 2026, depending on the advisor's credentials and the complexity of the question. Hourly billing suits a single decision, not ongoing management.
Are fee-only financial advisors worth the cost for a small business owner?
A fee-only advisor is worth the cost for owners whose planning needs go beyond a stock portfolio — cash flow, entity structure, and eventual transition. See a fuller breakdown in whether investment management is worth it for a small business owner.
Does a fee-only advisor charge more than a robo-advisor?
Yes, a fee-only advisor generally charges more than a robo-advisor's typical sub-0.5% fee, because a human advisor is handling planning work — taxes, business structure, succession — a robo-advisor doesn't touch.
Is a 1% AUM fee too high in 2026?
A 1% AUM fee is the industry standard in 2026 and isn't inherently too high, but it only covers investment management. If you need treasury or succession planning too, check whether that's bundled or billed separately before comparing advisors on fee alone.
Do fee-only advisors have a minimum account size?
Many fee-only advisors set a minimum account size for AUM-based service, though flat-fee and hourly arrangements often have none. Ask directly, since minimums vary firm to firm and aren't standardized in 2026.
What's the difference between a fee-only advisor and a fiduciary?
Fee-only describes how an advisor is paid; fiduciary describes a legal duty to act in your best interest. A fee-only, SEC-registered RIA like Vital Investment Management commits to both.
One last thing
The biggest blind spot in the "1% of AUM" conversation is that your business itself usually isn't counted. If your company is worth more than your investment portfolio — which is true for most owners before a sale — an advisor billing purely on managed assets has no financial incentive to spend real time on your transition plan. Ask directly whether succession and treasury work are included in the fee quote, or billed as a separate flat-fee engagement, before you sign anything in 2026.
