How Much Does a Financial Advisor Cost?

Hiring a financial advisor can be a great move to help you achieve your financial goals and establish an investing strategy based upon your individual needs and circumstances.

What Does a Financial Advisor Do?

Though many people use a financial planner simply to invest for retirement, this is only a small part of what many advisors offer.

How Much Does a Financial Advisor Cost?

The cost of hiring a financial advisor can vary significantly based upon the services provided.

Let’s review each compensation model in greater detail to learn the costs you can expect to pay a financial advisor for their services.

Financial Advisors Who Charge Based on Percentage of Assets Under Management (AUM)

Best For – If you want a full-service advisor with no hidden fees, finding a good fee-only advisor who charges based on AUM may be a good fit.

Best For – If you want to avoid annual fees and don’t mind paying for financial products (as long as you understand them), you may consider a commission-based financial advisor.

Commission-Based Financial Advisors

Best For – If you don’t have a large balance of investable assets but still want access to a financial advisor, the subscription model may be a good fit.

Financial Advisors who Charge Subscription-Based Fees (Annual or Monthly)

Best For – If you have a good income, but don’t have a large balance of investable assets and still want access to a financial advisor, the percentage of income model may be a good solution.

Financial Advisors who Charge Based on a Percentage of Your Income

Flat Fee Financial Advisors

Best For – If you plan to establish a longer-term relationship with a financial advisor who charges you a fixed cost each year, a flat fee financial advisor may be an ideal solution for you. This is especially true if you plan to manage your own investments.

Best For – If you simply want access to a financial advisor to answer questions and help you build a financial plan, paying for an hourly-based financial advisor may be a good fit.

Hourly Fee Financial Advisors (with Retainer)

Best For – If you need help in a specific area and don’t want to fork over thousands for a comprehensive plan, consider paying a one-time fee for a specific planning session.

Financial Advisors who Charge a One-Time Fee (Modular Pricing)

How to Choose a Financial Advisor

Decide Which Services You Need

Review Fee Structures

Interview Multiple Advisors

Check Advisor Credentials