How Much Does a Financial Advisor Cost?

How Much Does a Financial Advisor Cost?

Over the years, financial advisor fees have evolved as the industry has moved to a more transparent pricing structure. But there is still a lot of confusion on how financial advisors make money, and how much is a reasonable amount to pay.

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.

– Budgeting and money management – Funding college and higher education – Debt management – Insurance planning – Retirement planning – Investment planning – Inheritance planning – Estate planning – Tax planning

How Much Does a Financial Advisor Cost?

The cost of hiring a financial advisor can vary significantly based on the services provided. Paying a 1% fee on your assets managed by a financial advisor is quite common, but there are at least seven ways financial advisors are compensated by clients, each with varying costs.

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.

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

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

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

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 Planning

For More Posts about

3 Reasons Why a Financial Advisor is Worth the Money

Financial Advisors for Immigrants & Foreign Nationals

Liquid Net Worth: Definition, Quick Calculation & Why It Matters