How To Charge For Financial Planning?

Опубликовано: 06 Май 2025
на канале: Transition To RIA

743

I'm Brad Wales with Transition To RIA. This is video #45 of the Transition To RIA question and answer series where I answer RIA related questions I get from advisors just like you.

Ever have a prospective client where an AUM fee model is not feasible, and/or desired?

The common example is a doctor shortly out of residency.

These so-called HENRY’s (High Earning, Not Rich Yet) want the advice you provide, but don’t yet have the investable assets to support an AUM-fee model approach.

What they do have though is income to be able to pay you via what is often referred to as “fee-for-service”.

Such approaches include charging monthly subscription fees, retainers, hourly, flat-fee arrangements, etc.

Some RIA firms are built from scratch to be solely fee-for-service. Others are primarily an AUM fee model, who desire to expand their service offering and work with potentially fantastic long-term clients they might not otherwise be able to feasibly service in the short term (ex: HENRY’s).

In this video, I am joined by Lucy Robeson and Isabelle McGrail of AdvicePay where we cover how to logistically (and compliantly!) incorporate fee-for-service into your advisory practice.

Come take a look!

What I do: At Transition To RIA I help financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model.

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🔹 Transcription of video:

Brad: How do I incorporate fee-for-service financial planning into my advisory practice? This is the Transition To RIA question and answer series. It is question #45.

Hi, I'm Brad Wales with Transition To RIA. On today's question, we're going to be talking about fee-for-service financial planning.

Many of you have probably heard of fee-for-service. It seems to be getting a lot more buzz in the industry, a lot of articles being written about it, firms talking about doing it. And so the question is, first of all, what exactly is fee-for-service financial planning? And why might you want to incorporate this into your practice? And if you do want to incorporate it, how do you go about actually doing that?

I'm excited, for those of you that are watching this in video form, we do have two guests today from AdvicePay. We have Lucy Robeson and Isabelle McGrail. Lucy and Isabelle, thanks for joining me.

Lucy: Hi, Brad. Thanks.

Isabelle: Hi, Brad.

Brad: I will turn it back over to both of them in a second to give a background on themselves and their firm.

I think this is very timely. This is not a new topic. And part of the intro, you guys can even say how long AdvicePay has been around, not that it (fee-for-service) only came about with AdvicePay. But I think advisors have been doing this for quite some time.

There's some RIAs that start up solely doing fee-for-service, that is 100% their business model. And we're seeing more and more - we'll dive into this - it exists in tenured firms that have never done this at all, that are now starting to incorporate it into their practices for one reason or another.

A lot of great, valuable information to come and I look forward to diving into that here today. If you could, if both of you could give a brief background on yourselves and AdvicePay, that would be helpful.

Lucy: Sure. Happy to do it. Thanks for having us both on. I'm Lucy Robeson, and I'm the managing director at AdvicePay. So, my background is actually as a Certified Financial Planner. I was working directly with clients and found a love for the operations and technology side of working within an RIA and wanting to help advisors find those solutions.

AdvicePay was founded in 2016. I joined the team in 2018. Really providing this payment platform solution for advisors who want to do fee-for-service financial planning, which I know we'll dig into today.

I'll let Isabelle talk a little bit more about what our solution is with her introduction.

Isabelle: Thanks, Lucy. My name is Isabelle McGrail. I've been with AdvicePay for about two years now. I'm a business development associate here at AdvicePay. Con't.....

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