This is episode #45 of the Transition To RIA question and answer series where I answer Registered Investment Advisor (RIA) related questions I get from advisors just like you. On today's episode I answer the question.....how to charge for financial planning?

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).

On this episode, 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.