Financial planners traditionally have built their practices around assets under management (AUM) fees, but a growing segment of independent RIAs is shifting toward alternative fee structures. According to Financial Planning, advice-only and flat-fee models continue to gain traction, and many advisors now offer one-time or fixed-period planning engagements at set prices.
Advisors who adopt this model say it simplifies operations and reduces the pressure that comes with long-term client relationships. Jon Luskin, founder of Luskin Financial Planning in San Diego, noted that he values the streamlined approach. He offers a one-day financial review for a fixed fee, which eliminates recurring administrative work and reduces the need for constant check-ins.
According to Financial Planning, other advisors echo that sentiment. Chandler Fugate-Laus, founder of moneyfluent in Columbus, Ohio, said fixed-period planning solves two recurring challenges: the ongoing pressure to provide value year-round and the time spent pursuing clients for documents. She explained that annual reviews often create a dynamic where advisors feel obligated to deliver new insights even when clients have everything they need.
Fixed-period planning does, however, present constraints. Financial Planning reports that advisors who rely on this approach may find it difficult to scale because each engagement has a natural end date. For some practitioners, that trade-off is intentional. They prefer a model that emphasizes focused, high-impact work rather than growth centered on long-term retainers, according to Financial Planning.
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