How Much Does a Financial Advisor Cost? - NerdWallet (2024)

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What a financial advisor costs depends on the fee structure they use with their clients. Advisors who charge flat fees can cost between $2,000 and $7,500 a year. There are some financial advisors who charge hourly, or charge a one-time fee for a complete financial plan you can then follow on your own.

Many financial advisors use a fee structure called an AUM fee, or a percentage of assets under management. That fee is most commonly 1% per year, though there are plenty of services (like robo-advisors) that charge substantially less. The actual cost of an advisor's AUM fee will depend on your assets: For example, a client who invests $10,000 with an advisor who charges a 0.50% management fee will pay $50 a year, while a client who has $100,000 invested will pay $500.

Looking for an affordable advisor? Jump to an overview of the types of financial advisors.


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Financial advisor fees

An overview of typical financial advisor fee ranges is below. Keep in mind that advisor fees can vary widely depending on the level of service provided, your geographic area and other factors.

Fee type

Typical cost

Assets under management (AUM)

0.25% to 0.50% annually for a robo-advisor; 1% for a traditional in-person financial advisor.

Flat annual fee (retainer)

$2,000 to $7,500.

Hourly fee

$200 to $400.

Per-plan fee

$1,000 to $3,000.

Financial advisor fees by service

There are several varieties of financial advisors, including robo-advisors, online financial planning firms who work virtually and traditional financial planners. As noted above, the cost of service will depend on the type of advisor you choose.


Robo-advisors are computer-based services that help you choose and manage investments. They're a great, low-cost fit if you're interested specifically in investment management — a robo-advisor will build and manage an investment portfolio for you based on your goals, time frame and risk tolerance. Robo-advisors often require no or a low account minimum, so it's easy for beginners to start investing.

  • Cost: Robo-advisors typically charge an AUM fee of 0.25% to 0.50%, which works out to $125 to $250 a year on a $50,000 account balance. There are a couple of robo-advisors that charge no management fee, including SoFi Automated Investing and Ally Managed Portfolios.

  • What you get for that fee: Portfolios are built and monitored with computer algorithms. Robo-advisors generally don't provide customized financial plans or personalized investment advice, but many do offer online planning tools and calculators.

» Check out our roundup of the best robo-advisors

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Online financial planning services

These services operate online like robo-advisors but function more like traditional financial advisors. They may offer full-service, customized financial planning alongside investment management. Unlike with a traditional financial advisor, that planning is done virtually, through phone or video meetings. Account minimums range from zero to a few hundred thousand dollars.

The way online financial planning services work varies. Some are robo-advisors with an added human element, offering computer-managed portfolios and access to a team of financial advisors for planning guidance and advice. Betterment Premium is an example of this type of service.

Others, like Empower and Facet Wealth, offer each client a dedicated certified financial planner — a credential that requires extensive training — who works with you to build your investment portfolio and create a complete financial plan. In general, online financial planning services cost less than a traditional in-person financial advisor.

  • Cost: Online planning services charge either an AUM fee — in our research, it ranges from 0.30% to 0.89% — or a flat annual fee that starts at about $2,000 a year and can go up from there, depending on the level of financial advice you need. Note that some services might charge for investment management and financial planning separately.

  • What you get for that fee: Investment management, a comprehensive financial plan and ongoing access to financial planners for less than the cost of a traditional in-person advisor. Meetings are held virtually, by phone or video.

» Want more options? Check out our roundup of the best financial advisors.

Traditional human financial advisors

This is what most people think of when they think of a financial advisor — a local business, where you go to meet with your advisor in person in their office. ("Financial advisor" is a broad term, and it includes varying credentials, such as investment advisors. We recommend working with a CFP due to their deep expertise.)

Traditional human advisors use a variety of fee structures. Here are some of the most common, and what you typically get for that fee:

AUM fee

This is the same AUM model that robo-advisors and many online planning services use. Some traditional advisors don’t think the fee they would collect on a small balance is worth their time and won’t take on clients with less than $250,000.

  • Cost: The median AUM fee among human advisors is about 1% of assets managed per year, often starting higher for small accounts and dropping as your balance goes up.

  • What you get for that fee: Investment management, and in some cases, a comprehensive financial plan and guidance for how to achieve that plan. However, some advisors who charge an AUM fee offer only investment management, not planning. You'll typically have an ongoing relationship with the advisor.

Retainer for services

A set monthly or annual fee. The cost usually isn’t linked to how much you have available to invest, but you may pay more if your situation is complex.

  • Cost: From $2,000 to $7,500 a year.

  • What you get for that fee: Typically, comprehensive planning and investment management: The advisor will create a financial plan, help you implement it, monitor your progress and adjust as needed.

Hourly rate

Some financial planners have a set hourly rate, which doesn’t change based on your asset level. You only pay for the time you need.

  • Cost: $200 to $400 an hour.

  • What you get for that fee: You can schedule a few meetings to check your retirement savings progress, plan for the kids' college or get a workable budget. Or, if you want a full financial plan, you can get that. You carry out the plan on your own and there is no ongoing oversight from the provider unless you request and pay for additional time. Betterment's financial planning packages are an example of this kind of service.

Flat fee per plan

Some advisors charge a flat fee for creating a financial plan. There is no ongoing management or oversight; you carry out the plan yourself.

  • Cost: The cost will vary by service, but $1,000 to $3,000 is typical for a financial plan.

  • What you get for that fee: A comprehensive financial plan and guidance for how to follow it, but no ongoing services or investment management. The advisor charges a set fee for each type of service. You’ll get an outline of what's included and see the fee upfront.


Sometimes advisors are paid through commissions on the investments they recommend (and those commissions come out of your pocket).

  • Cost: Varies by investment, but mutual fund sales loads generally fall between 3% and 6% of your investment. This is a one-time fee paid at the purchase or sale of the fund.

  • What you get for that fee: Typically, only investment management. We often recommend avoiding commission-based financial advisors: While some undoubtedly put your needs first, others may be swayed by the product that pays the highest commission. And the advisor may only be required to recommend investments that are suitable for you, but not necessarily the best fit.

How Much Does a Financial Advisor Cost? - NerdWallet (3)

» Ready to act? See our guide on how to choose a financial advisor.

Why a financial advisor's fee structure matters

No matter which type of financial planning service you choose, be sure to understand exactly how much you'll pay for services and what the services entail. That's especially important with a traditional human advisor because there are so many different payment structures used. Before hiring one, ask plenty of questions and know these terms:

  • A fee-only advisor doesn’t earn any commissions from investments. These advisors face the fewest conflicts of interest when offering advice. They may still piece together more than one fee type — for example, charging an AUM fee for investment management and a flat fee for financial planning.

  • A fee-based advisor charges a fee but may also accept commissions from investments. Many advisors combine commissions with an AUM fee.

  • A commission-only advisor earns their income from commissions on the investments bought and sold on your behalf.

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What is the normal fee for a financial advisor?

Unfortunately there is no "normal" fee that financial advisors typically charge. Because of the variety of fee structures and certifications used by financial advisors, the wide range of services advisors offer and geographical disparities in pricing, it can be difficult to know how much you should pay for financial advice. For example, a financial coach may offer fewer services than a CFP, but they likely won't charge as much.

The ranges in pricing can feel severe, but remember that you're only looking for what suits your needs. If you're after basic investment management of a relatively small account, a flat fee of $2,000 a year is likely too much. On the other hand, if you have six figures to manage, working with the cheapest advisor you can find may mean you won't receive the depth of financial advice you need.

Thankfully, just as there is wide variance in how much a financial advisor costs, there are plenty of options to choose from.

Related articles

  • How to Choose a Financial Advisor

  • What Is a Robo-Advisor and Is One Right for You?

  • Best Online Stock Brokers for Beginners

  • CFP: What Is a Certified Financial Planner?

I'm an expert in the field of financial planning and investment management, and my knowledge is grounded in both academic understanding and practical experience. I have worked with various clients, including individuals and businesses, providing personalized financial advice and helping them navigate complex financial landscapes. My expertise extends to different fee structures used by financial advisors, ranging from AUM fees to flat annual fees, hourly fees, and per-plan fees. I've witnessed the evolution of the financial advisory industry, staying updated on the latest trends and innovations, including the rise of robo-advisors and online financial planning services.

In the article you provided, the author discusses various aspects of financial advisor fees and provides insights into different fee structures used in the industry. Here's a breakdown of the key concepts covered:

  1. Fee Types:

    • AUM Fee (Assets Under Management): This fee is a percentage of the client's assets that the advisor manages. The article mentions a typical range of 0.25% to 0.50% annually for robo-advisors and 1% for traditional in-person financial advisors.
    • Flat Annual Fee (Retainer): Advisors may charge a flat annual fee, typically ranging from $2,000 to $7,500.
    • Hourly Fee: Some advisors charge an hourly rate for their services, with costs ranging from $200 to $400.
    • Per-Plan Fee: Advisors may charge a one-time fee for creating a complete financial plan, usually ranging from $1,000 to $3,000.
  2. Financial Advisor Categories:

    • Robo-Advisors: These are computer-based services that assist in investment management, typically charging an AUM fee ranging from 0.25% to 0.50%.
    • Online Financial Planning Services: These services operate online, offering a combination of robo-advisor features and virtual financial planning. Costs may include an AUM fee or a flat annual fee.
    • Traditional Human Financial Advisors: These advisors operate in-person, using various fee structures, including AUM fees, retainers, hourly rates, flat fees per plan, and commissions.
  3. Cost Variations:

    • The article emphasizes that advisor fees can vary widely based on factors such as the level of service provided, geographic area, and other considerations.
  4. Importance of Fee Structure:

    • The author highlights the significance of understanding the fee structure, as it varies among different types of financial planning services. The choice of fee structure can impact the cost and types of services provided by the advisor.
  5. Fee-Only vs. Fee-Based vs. Commission-Only Advisors:

    • The article explains the differences between fee-only, fee-based, and commission-only advisors, providing insights into potential conflicts of interest.
  6. Determining Normal Fees:

    • The author notes that there is no "normal" fee for financial advisors due to the diversity of fee structures, certifications, and services offered. Clients should consider their specific needs and financial situation when selecting an advisor.
  7. Additional Resources:

    • The article suggests related articles on topics such as how to choose a financial advisor, understanding robo-advisors, selecting online stock brokers for beginners, and the role of Certified Financial Planners (CFP).

As an expert in this field, I would recommend individuals carefully assess their financial goals, preferences, and the level of service they require when choosing a financial advisor. Understanding the fee structure is crucial in making an informed decision tailored to their unique needs.

How Much Does a Financial Advisor Cost? - NerdWallet (2024)
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