You do not need a set net worth before hiring a fee-only fiduciary advisor. The minimum depends on which fee model you pick. AUM-based advisors usually want $250,000 to $1,000,000 in investable assets before they will take you on. Their fee is a percent of those assets, and a small account does not pay them enough to justify the work. Flat-retainer advisors charge $2,500 to $10,000 a year no matter the balance, with no asset minimum. Hourly fee-only fiduciaries, like the Garrett Planning Network and the XY Planning Network, serve clients of any size at $200 to $500 per hour. Project-fee advisors charge $1,500 to $5,000 for a single deliverable, like a one-time financial plan. So the short version is simple: the AUM model has minimums, and the other three models do not. Pick the model that fits the work, not the size of your portfolio.
Rules of thumb by fee model
| Model | Typical minimum | Best fit |
|---|---|---|
| AUM (% of assets) | $250K to $1M | Households with portfolios already invested |
| Flat retainer | None | Complex situations, business owners, equity comp |
| Hourly | None | One-time questions, second opinions |
| Project fee | None | A specific plan or rollover decision |
What to do if you are below AUM minimums
You have three good options.
- Hire an hourly fee-only fiduciary for one or two sessions. Cost: $1,000 to $2,500 total. Use them for the hard decisions and run the rest yourself.
- Buy a one-time financial plan for $2,500 to $5,000 from a flat-fee planner.
- Use a low-cost robo-advisor for the accumulation years. Pair with a fiduciary at the major life events.
A word on "advisors" who do take small balances
Be careful. Many firms that advertise "no minimums" are commission-based and earn product commissions on what they sell you. The "no minimum" is the hook. The cost is paid through 12b-1 fees, annuity commissions, or insurance overrides. A fee-only fiduciary will tell you up front, in writing, what the all-in cost is.
What if you grow into AUM territory later
Many fee-only advisors are happy to start you on hourly or flat-fee work and then move you to AUM as your balance grows. Ask up front whether the firm offers a glide path. The good ones do. That way the relationship grows with you instead of forcing you to switch firms once your portfolio crosses a minimum.
