Wealth Management Fees: This is How Much a Financial Advisor Costs
22 Feb 2020
As you move forward in life, it’s important to make strives to achieve your financial goals. Finances are tricky, though, and it may be the case that working with a financial advisor is the only way you can manage your funds.
Building wealth is certainly made easier when you’re working with a professional. Financial advisors cost money, though.
We’re going to discuss financial advisor wealth management fees in this article, giving you a better idea of how much you can expect to pay.
Average Financial Advisor Wealth Management Fees
Naturally, the cost of services will range depending on how much money you’re working with and the tasks your financial advisor has to do.
You also have to factor in the reputation of the individual, their level of schooling, and other personal factors that an advisor brings to the table. If you’re not interested in paying too much for a financial (and missing out on valuable human insight), you can go with a Robo-Advisor.
Robo-Advisors are algorithmic programs that handle your money and give you advice based on calculations. On the other hand, a person might be better able to meet your specific needs.
There are a few different ways that an advisor might request to be paid. Let’ take a look at those options:
1. Percentage of Assets
Some advisors might want to be paid a percentage of the assets that you have in your account. They’ll likely want a percentage of the assets that they manage, not just the total amount of money that you own.
In a lot of cases, that percentage will be 1 or 2 percent.
2. Hourly
If you’re looking for help with a specific project or a consulting issue, you may be charged hourly. You could also be charged hourly for other services as well, depending on how much work your advisor will have to do and how involved they’ll be in your finances.
Because these services are so valuable, advisors typically charge 200 to 400 dollars an hour. Again, those estimates are liable to change depending on the experience and skill of the advisor.
3. Pre-Determined Rates
You could pay a fixed fee for a common service. Something like having a financial plan crafted for you will often cost a flat rate.
You could also pay a fixed rate for a predetermined length of time for a service or an annual retainer. In these cases, you can expect to pay somewhere from 2 to 8 thousand dollars.
Advisors will vary in the kind of clients they take on and the sort of services they provide. For example, those who seek a percentage of a client’s wealth might only take on individuals who have a significant amount of wealth before coming in.
Also, keep in mind that high rates and fees for financial planners are excellent investments. While it may seem tough to give over a few thousand dollars, remember that these are professionals who understand how to make your money work for you.
Want to Learn More?
If you’re interested in learning more about wealth management fees and the services they pay for, we’re here to help. We all need a little guidance when it comes to our finances.
Explore our site for more wealth management resources.
