How much does a financial advisor cost?

A fee-only financial advisor's costs can range greatly, depending on their expertise and years of experience, their region, and the services they offer. A retainer fee can range between $6,000 and $10,000 annually, a fixed annual fee between $1,000 and $3,000, an hourly fee between $120 and $300, and between 0.5% and 2% of assets under management.

What fee structures do financial advisors use to charge clients?

Here’s a breakdown of the different fee structures financial advisors use to charge clients. One of the most common fee structures used by financial advisors is assets under management, or AUM. It’s a percentage of all the money they manage for you, aka your total assets. You can expect to pay an AUM fee of 0.25 percent to 1 percent.

Should you hire a financial advisor with a fixed cost?

If you’re preparing to hire an advisor, learn if an advisor who charges a fixed cost is right for you. A growing number of financial advisors offer services for a flat fee as an alternative to traditional pricing models (e.g., charging you 1% of the value of your portfolio managed by the advisor).