What is a Flat Fee Financial Advisor?

By David Lundberg, MBA, MSCJ, Marine Veteran, Flat-Fee Fiduciary Financial Planner. Ashley Lundberg, MSBL, Financial Educator and Wellness Guide. Founders of Awaken Financial Designs. Yoga Teacher Certified for Wellness. Headquartered in North Carolina, Arizona, and virtually nationwide where appropriately licensed.

Many people searching for a flat-fee financial advisor like in Cary, North Carolina or elsewhere, are not actually looking for a fee structure alone. They are looking for clarity and they want to know:

• Are there alternatives to paying an ongoing percentage of our investments for financial advice?

• Can we retire sooner than we think?

• Are there tax opportunities we may be missing?

• Should we consider Roth IRA conversions?

• What decisions may matter most before and during retirement?

• Do we need to pay an assets under management (AUM) fee, or are there flat fee planning options available?

Often, the search for a flat fee financial advisor begins with questions like these. Many individuals and couples are not simply searching for a fee structure. They are seeking greater clarity around retirement, taxes, investments, and the financial decisions that may have the greatest impact on their future.

This article is written for people in that exact place.

Why Some People Explore a Flat-Fee Planning Model with No AUM Fees

People search for flat-fee financial advisors for many different reasons. Often, they are not looking for a particular fee structure as much as they are looking for greater clarity around important financial decisions. A flat-fee planning model with no AUM fees may be worth exploring in situations such as:

• Exploring alternatives to investment minimums and percentage-based fees. Many financial firms have minimum investment requirements such as $500,000, $1,000,000, or more in investable assets before providing ongoing advice or planning services. Others also charge an ongoing assets-under-management (AUM) fee based on the size of your portfolio. For example, a household with $3,000,000 invested may be paying a substantial annual advisory fee through a percentage-based arrangement. For some individuals and couples, it may be worthwhile to explore whether a flat-fee planning model with no AUM fees aligns better with their preferences, planning needs, and overall financial situation. 

• Approaching retirement. You have spent years saving and investing, but you have never fully seen your retirement options clearly. You may be wondering when retirement is realistic, what your after-tax income could look like, and how different retirement dates might impact your long-term future. Some individuals and couples prefer to pay for flat fee planning and analysis directly rather than through an ongoing percentage of their investment assets.

• Looking for a one-time retirement or financial plan. Not everyone is looking for an ongoing advisory relationship. Some people simply want a comprehensive plan that helps them evaluate retirement timing, tax opportunities, retirement income, Roth IRA conversion considerations, and other major decisions before determining next steps.

• Evaluating Roth IRA conversion opportunities. You have heard Roth IRA conversions may create opportunities in certain years, but understanding when, how much, and whether a conversion makes sense for your own situation requires coordinated analysis rather than a general answer.

• Reviewing how you currently pay for financial advice. You may not be entirely certain how your current advisor is compensated, or you may simply be curious whether other planning models exist. Understanding the available options can help you determine which approach best aligns with your preferences and goals.

• Seeking an independent second opinion. You may already have a financial plan or advisor but want an independent perspective before making significant retirement, tax, Social Security, or estate planning decisions.

• Managing a more complex financial picture. Stock options, RSUs, deferred compensation plans, concentrated stock positions, multiple account types, business ownership interests, and retirement planning often require coordinated planning that extends beyond investment management alone.

• Looking for retirement income planning. Many people spend decades focused on accumulating assets but have never fully explored how retirement income may be created. Decisions involving Social Security, taxes, Roth assets, withdrawal sequencing, and retirement spending can have a meaningful impact on long-term outcomes.

Many people spend additional years working simply because they have never clearly seen their retirement options. One of the goals of comprehensive planning is helping individuals and couples better understand what may be possible through coordinated analysis and visual planning.

A flat-fee planning model with no AUM fees is not necessarily the right fit for everyone. However, for some individuals and couples, it may provide a planning relationship that aligns well with how they prefer to receive advice, guidance, and retirement planning support.

What Does "No AUM Fees" Actually Mean?

The phrase "no AUM fees" appears frequently in searches for flat fee financial advisors. It is worth understanding clearly. AUM stands for Assets Under Management. It refers to a compensation model in which a financial advisor charges a percentage of the investment assets they manage on a client's behalf. A common rate is approximately 1% annually, though this varies.

On a $500,000 portfolio, a 1% AUM fee is $5,000 per year. On a $1,000,000 portfolio, that same fee is $10,000 per year. On a $2,000,000 portfolio, it is $20,000 per year; every year. This is not inherently right or wrong. It is one compensation structure among several that exist in the financial planning industry.

Other models include:

Flat fee planning with no AUM fees. An advisor charges a clearly defined, pre-agreed fee for a specific scope of planning work not a percentage of assets. The fee does not change based on portfolio size.

Flat-Fee Planning Plus AUM Fees. Some firms offer a flat planning fee while also charging an ongoing assets-under-management (AUM) fee for investment management. This approach combines a planning fee with a portfolio-based fee structure. The specific services and fees vary by firm, making it important to understand how compensation works and what is included. 

Retainer or subscription. An ongoing flat fee paid monthly, quarterly or annually for continued access to planning services.

Different models suit different situations and different preferences. Understanding the structure helps consumers make informed decisions about the kind of financial planning relationship they want.

At Awaken Financial Designs, our planning model is flat-fee with no AUM fees. Meaning we do not charge a percentage of your investments for our planning services. Our complete fee and compensation disclosures are publicly described in our Form ADV Part 2A and 2B, available to all prospective clients.

Why We Chose a Flat Fee Planning Model With No AUM Fees

At Awaken Financial Designs, we intentionally chose a flat fee planning model with no AUM fees in North Carolina, Arizona, and elsewhere. We wanted to explain our reasoning directly.

We recognize that not everyone who needs comprehensive financial planning has $1,000,000 or more in investable assets sitting in accounts. Some individuals are still working and building wealth through employer retirement plans such as 401(k)s, 403(b)s, TSPs, and other workplace savings plans. Others may have substantial assets spread across retirement accounts, stock compensation plans, real estate, or other holdings that are not managed within a traditional investment account.

We chose a flat-fee planning model with no AUM fees because we wanted individuals and couples to have access to comprehensive retirement and financial planning regardless of how their assets are structured. Whether someone has $300,000 or $5,000,000, we believe meaningful planning conversations should be available to people seeking clarity around retirement, taxes, investments, and major financial decisions. This may include individuals approaching retirement as well as those still actively building wealth during their working years.

Different compensation structures may be appropriate for different firms and different clients. We simply believe this model aligns well with how we help people explore their options, evaluate important decisions, and gain greater clarity about what may be possible.

What a Flat Fee Financial Planning Engagement Actually Includes

A common question from people new to flat fee planning with no AUM fees: what exactly do you receive?

At Awaken Financial Designs, our retirement and financial planning engagement is a comprehensive process that produces a written and visual plan. It is not a general conversation. It is a coordinated analysis of your specific situation, designed to help you see your retirement options, tax strategy, and income picture clearly.

A flat fee plan typically covers:

Retirement timing at multiple ages. Modeling what retirement looks like at different ages allows you to see the tradeoffs and possibilities clearly, rather than working from a single assumed retirement date.

After-tax income projections. Understanding what you can realistically spend in retirement; accounting for taxes, account sequencing, and longevity. It  is different from simply looking at account balances.

Roth IRA conversion analysis. When conversions may make sense, when they may not, and what the long-term tax difference could look like across multiple scenarios.

Tax sequencing strategy. Which accounts to draw from, in which order, in which years. This decision has meaningful tax implications over a retirement that may span 30 years or more.

Social Security Benefit timing. The decision most couples make without fully modeling the long-term tradeoffs for their specific situation.

Account coordination. How your 401k, Roth IRA, taxable brokerage, HSA, deferred compensation, and other accounts work together intentionally, not in isolation.

Written visual plan delivered. A comprehensive document you reference and act on over time.

One Time planning relationship. If you choose our One-Time Retirement & Financial Plan, this planning process can be completed without transferring assets, changing custodians, or entering an ongoing advisory relationship. You receive a comprehensive written and visual plan designed to help you better understand your retirement options, tax opportunities, retirement income, and important financial decisions. You can then implement the recommendations yourself or with whatever professionals, resources, and relationships make the most sense for your situation. 

Ongoing planning relationship available. Some individuals and couples prefer ongoing guidance as retirement approaches or after retirement begins. Our ongoing planning relationship provides continued support around retirement income, tax planning, Roth IRA conversions, investment decisions, retirement projections, and other financial planning matters as life changes over time. 

Optional investment management with no AUM fees. Clients may choose to manage their own investments while receiving ongoing planning guidance, or they may elect to utilize our optional investment management services. Unlike many traditional advisory arrangements, Awaken Financial Designs does not charge an assets-under-management (AUM) fee for advisory planning services. We believe some individuals and couples appreciate the ability to receive ongoing planning and optional professional investment management without paying an advisory fee based solely on the size of their investment portfolio. 

Why We Joined FlatFeePlanners.com

Awaken Financial Designs recently became a Verified Member of FlatFeePlanners.com  a national directory built specifically for financial planners who offer flat-fee planning rather than AUM-based compensation only. Our profile was reviewed before approval and reflects our publicly disclosed flat-fee planning model with no AUM fees.

We also appreciated that FlatFeePlanners.com distinguishes between advisors who charge flat fees no AUMs and advisors who charge flat fees with assets under-management fees. Awaken Financial Designs operates as a flat-fee planning firm with no AUM fees, we felt the directory aligned well with our planning philosophy and compensation structure.

You can view our verified profile at flatfeeplanners.com. Our planning fees, services, disclosures, and compensation structure are publicly described in our Form ADV documents, which are available to all prospective clients and through public regulatory filings.

About Awaken Financial Designs

Awaken Financial Designs is a Veteran-Owned and Woman-Owned independent Registered Investment Adviser headquartered in Cary, North Carolina and Arizona. The firm was founded by David and Ashley Lundberg, a husband-and-wife team with more than twenty years of partnership in both life and business. This provides a unique perspective when working with individuals, couples, and families navigating major life and retirement decisions.

David is a United States Marine Corps Combat Veteran who spent years working with firms including Charles Schwab and Merrill Lynch before building an independent flat-fee practice. Ashley brings a background in executive relationship advising and holds a Master's in Business Leadership.

We are registered as an independent Registered Investment Adviser in North Carolina and Arizona and serve clients virtually where we are registered or otherwise exempt from registration requirements.  We serve clients in Cary, Raleigh, Durham, Chapel Hill, Apex, Morrisville, and across the Research Triangle as well as clients in Arizona and virtually nationwide where we are registered or exempt from registration.

While financial planning remains the primary focus of every engagement, David and Ashley are also Certified Yoga Teachers and Pranayama breathwork practitioners. These practices are not financial strategies. However, they reinforce a belief that people often make better decisions when they have the opportunity to slow down, reduce distractions, and evaluate their options with greater clarity.

Frequently Asked Questions

Why do some people prefer flat-fee financial planning with no AUM fees? Different people have different preferences for how they pay for professional services. Some prefer a clearly defined fee for a specific scope of planning work rather than an ongoing percentage-based relationship. Others prefer flat-fee planning with no AUM fees because they want advice that is not tied to the size of their investment accounts. Understanding the available models helps individuals make choices that align with their preferences and situation.

What does "no AUM fees" mean? It means the financial planner does not charge a percentage of your assets under management. Instead, they charge a defined fee for planning services. The total cost does not increase as your portfolio grows.

Why did Awaken Financial Designs choose a flat-fee planning model with no AUM fees? We chose a flat-fee planning model with no AUM fees because we wanted our compensation to be tied to the planning work we provide rather than the size of a client's investment portfolio. We believe transparency around compensation helps individuals and couples better understand their options and make informed decisions about the type of planning relationship they prefer.

Can I work with a flat-fee financial advisor if I am already retired? Yes. Retirement is often when coordinated planning  tax sequencing, income layering, Roth conversion decisions, Social Security timing  becomes most important. A flat-fee plan can provide clarity on these decisions regardless of whether you are approaching retirement or already in it.

How do I verify how a financial advisor is compensated? Every registered investment adviser is required to provide clients with a Form ADV Part 2A and 2B, which describes the firm's services, fees, and compensation structure. These documents are also publicly available through the SEC's Investment Adviser Public Disclosure database at adviserinfo.sec.gov. Awaken Financial Designs' CRD number is 339725.

Is Awaken Financial Designs a fiduciary? Yes. Awaken Financial Designs is a Registered Investment Adviser registered with the North Carolina Securities Division and the Arizona Corporation Commission. When providing investment advisory services, we act as a fiduciary in accordance with applicable law. Registration does not imply a certain level of skill or training.

What is FlatFeePlanners.com? FlatFeePlanners.com is a national directory designed to help consumers find financial planners who offer flat-fee planning rather than AUM-based compensation. Advisors listed on the platform have been reviewed to verify their fee structure and registration status. Awaken Financial Designs is a Verified Member.

Awaken Financial Designs LLC is a Registered Investment Adviser with the North Carolina Securities Division and the Arizona Corporation Commission. CRD #339725. Registration does not imply a certain level of skill or training. Our complete fee and compensation disclosures are described in our Form ADV Part 2A and 2B, available to all prospective clients.This article is for educational and informational purposes only and does not constitute investment, tax, or legal advice. Individual financial circumstances vary. Consult a qualified professional regarding your specific situation.