What a financial planner does
A financial planner helps you build a plan for your money — budgeting, saving, debt payoff, retirement targets, insurance needs, and how the pieces fit together. The deliverable is usually a written financial plan and a set of recommendations, not a stock tip. This guide is about hiring one and understanding their fees; it is not investment advice, and nothing here tells you what to buy or sell.
The credential to look for is CFP (Certified Financial Planner), which requires exams, experience, and a fiduciary commitment when giving advice. “Financial planner” and “financial advisor” are not protected titles on their own — anyone can use them — so the credential and fee structure tell you more than the job label. See financial planner vs financial advisor for how those roles overlap and diverge.
How they’re paid matters as much as their title. Fee-only planners charge you directly (hourly, flat, or a percentage of assets) and sell no products. Fee-based and commission planners can earn money from the products they recommend, which is a built-in conflict — not automatically disqualifying, but you should know about it.
What it costs
Hourly financial planning typically runs $150 to $400 per hour, and many fee-only planners also offer a flat fee for a complete written plan. A focused, single-question session sits at the low end; a comprehensive plan covering retirement, insurance, and taxes takes more hours and lands higher. Three things move the price:
- Scope — a one-time plan costs less than an ongoing planning relationship.
- Complexity — business ownership, equity compensation, or blended-family finances add hours.
- Fee model — hourly and flat-fee work is easy to compare; percentage-of-assets and commission structures are not, so ask for the dollar figure.
See the full breakdown in our financial planner cost guide.
How to choose one
Ask the fiduciary question first, and get the answer in writing: a true fiduciary is obligated to act in your interest at all times, not only during a formal advice session. Then ask exactly how they’re paid, in plain numbers. If the answer is complicated, that complexity usually favors them, not you.
A good planner starts by understanding your whole picture — income, debts, goals, timeline — before recommending anything, and hands you a plan you own regardless of whether you buy any product. An amateur or a salesperson steers toward a specific annuity or policy early. Verify the CFP credential through the CFP Board’s public directory and check for any disciplinary history before you sign.
When you don’t need one
If your finances are straightforward — steady income, an emergency fund, retirement contributions on autopilot — you may only need a one-time hourly session to check your plan rather than an ongoing relationship. A tax advisor may be the better first call if taxes are your main concern. Hire a planner when a decision is large and hard to reverse, and always confirm anything material with a licensed professional before you act.
Questions to ask before you hire
- Are you a fiduciary at all times, and will you put that in writing?
- Are you a CFP, and can I verify it through the CFP Board's directory?
- How exactly are you paid — fee-only, fee-based, or commission on products you sell?
- Do you earn commissions or referral fees from any product or company you'd recommend?
- Will you give me a written plan I own, or is the advice tied to buying something through you?
Red flags
- They dodge the fiduciary question or only act as one "when providing advice."
- The plan is really a sales funnel for a specific insurance or annuity product.
- Their pay comes mostly from commissions but they present themselves as objective.
- They can't or won't show a sample deliverable or explain their fee in plain numbers.