What amount of fees should I reasonably expect from a Financial Advisor?

What is a typical charge for a financial advisor to handle your retirement savings?

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3 weeks ago
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Adivsors charge fees in a variety of different ways. A few that you might expect to see would be an asset based fee, hourly fee, or a flat annual fee. 

The hourly and annual fee are self-explanatory. Those who charge by the hour will generally bill you in a similar fashion to your CPA or your attorney and the amount will completely depend on how much work they do for you in a given time period. The advisors that charge an annual fee will most-often keep that fee flat regardless of how often you call or need an appointment.

The asset-based compensation method - probably the most common you will find - is where an advisor will charge a percentage fee based on the amount of money you have invested with him or her. Most often, these fees range from .50% to 1.50%, and will be on a sliding scale to decrease as the amount of assets invested increases.

It is important that you understand how your advisor is compensated and I would recommend that you interview multiple professionals to ensure you are hiring the right person to fit your needs. With that said, finding the advisor with the lowest fees is not always the right solution, so be sure to understand their expenses, but then look beyond that and evaluate them on experience, scope of advice, philosophy, and integrity. I assure you that a good financial advisor is well worth the price you will pay.

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