hourly financial advisor
A financial advisor charging by the hour for specific advice rather than ongoing asset management.
Example
“The hourly financial advisor charged $250 per hour and answered her retirement questions in two hours.”
Memory Tip
HOURLY — pay for what you need. Great for specific questions without ongoing management.
Why It Matters
Hourly financial advisors offer a cost-effective way to get professional financial guidance without committing to expensive ongoing relationships or asset management fees. This model is particularly valuable for people who need targeted advice on specific issues like tax planning, retirement calculations, or investment strategy rather than comprehensive wealth management services.
Common Misconception
Many people assume that hourly advisors are less qualified or knowledgeable than fee-based or commission-based advisors, but this is not necessarily true. An hourly advisor can be equally experienced and credentialed; they simply have a different business model that may actually reduce conflicts of interest since they do not benefit from managing your assets.
In Practice
Sarah spends two hours with an hourly financial advisor at a rate of $250 per hour, paying $500 total to review her retirement plan and get recommendations on whether to increase her 401k contributions. Rather than paying 1 percent annually on $500,000 in assets managed by a traditional advisor, she pays only $500 upfront for targeted guidance on her specific question.
Etymology
Modern financial planning compensation model — pay for advice as needed.
Common Misspellings
Get a free financial plan from a real advisor
Related Terms
More in financial planning
Other financial planning terms you should know
See Also
Need financial definitions?
Clear definitions for 2,500+ finance, insurance, and investing terms.