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What are advisor fees?

Advisory fees: These fees are often charged as a percentage of the assets you have under management with the advisor, called AUM fees. “These fees are usually billed and paid directly from the accounts,” said Brian Kuhn, senior vice president and financial advisor at Wealth Enhancement Group. AUM fees are often charged quarterly.

How much do financial advisors charge?

Most financial advisors charge based on how much money they manage for you. That fee can range from 0.25% to 1% per year. Some financial advisors charge a flat hourly or annual fee instead. Many or all of the products featured here are from our partners who compensate us.

How do financial advisors get paid?

A financial advisor is compensated with one of these six compensation structures: A registered investment advisor, or RIA, is compensated based on their advice. They can only charge fees, and the most prevalent structure is the assets under management, or AUM, model.

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