Finance professionals with their own practices have more than just their clients’ finances to look after. Learn more about how to excel as an advisor and business owner.

Frequently Asked Questions
  • How much does it cost to have a financial advisor?

    The cost of seeing a financial advisor will vary depending on what your goals and needs are. If you just want to create a budget and select a target date fund to invest retirement savings, you can do that relatively quickly with an advisor charging around $100/hr. If you have funds to invest and you’d like an advisor to manage it for you, they may charge over 1% of your assets under management annually.

  • Can a client sue their financial advisor?

    Yes, clients can sue their financial advisor for negligence or malpractice, including breaches of fiduciary duty and regulatory noncompliance. Advisors can protect themselves from unexpected and costly claims by getting professional liability insurance.

  • Are financial advisors allowed to sell life insurance?

    Yes, financial advisors are allowed to sell their clients life insurance policies. Life insurance policies make financial sense for a lot of people, which is one reason financial advisors will recommend these policies. Though it is also true that advisors who sell life insurance can receive large upfront commissions and annual commissions of 3% to 5% for the remainder of the policy’s term.

  • How much do financial advisors make?

    The average salary for a financial advisor in the United States was about $120,000 in 2021.

Key Terms

Explore Practice Management

Skip Schweiss
Skip Schweiss on the FPA's Goals for 2021
Chart showing financial growth
How to Grow Your Advisory Practice in 2021
A table decorated for Thanksgiving
What Financial Advisors Were Grateful for in 2020
couple meeting with advisor
What the 2020 RIA Benchmarking Study Means for Advisors
Company Merger
The Changing RIA Landscape and What Advisors Need to Know
Financial Charts
How Financial Marketers Can Navigate Financial Crises
Financial chart
Marketing ETFs in Uncertain and Volatile Times
Financial Marketing in Turbulent Times
Market Volatility
How to Help Retired Clients Weather a Market Downturn
millennial and money
How Millennials Can Navigate the Bear Market
Image of volatile candlestick chart
Advisors Weigh in: How to Address Volatility and Recession Concerns During COVID-19
Registered Investment Advisor Definition
How to Advise Gen X Clients During Turbulent Markets
Bull and bear concept image
Advisors: How to Talk to Clients About Refinancing
What is volatility?
How to Address Volatility With Clients
What the Morgan Stanley, E*TRADE Merger Means for Advisors
Rianka Dorsainvil and Lazetta Braxton
Two Investopedia Top 100 Advisors Launch New Firm
Inside ETFs 2020
Inside ETFs 2020: Insights for Advisors
Should You Focus on Crypto in Your Advisory Practice?
Key Trends Reshaping the Financial Services Industry
couple talking to a professional advisor.jpg
How to Take a Mindful Approach to Your Advisory Practice
Businessman using laptop for analyzing data stock market, forex trading graph, stock exchange trading online, financial investment concept. All on laptop screen are design up.
How Technology Is Changing Financial Advice
Couple with Financial Advisor
9 Client Events to Grow Your Financial Advisor Practice
Trust: A Financial Advisor's Most Important Asset
Businesswoman watching screen in conference room.
10 Must Watch Documentaries for Finance Professionals
How Financial Advisers Can Protect Themselves Against Lawsuits
Reforming the Fiduciary Standard
How RIAs Can Avoid Discrimination in Hiring
A financial advisor meets with clients to discuss retirement plans
Is AI the Key to Scaling Your Practice?
Advisors: What Does Your Future Hold?
The Financial Advisor Industry Still Lacks Diversity
Active or Passive? Why Not Both?
Investor Checking Performance of Financial Portfolio Online Whilst Reviewing Investment Statement
How to Talk to Clients About Market Volatility
Transition Planning: Include the Whole Family
More Advisors Are Going Independent, With No Regrets
4 Signs You Should Fire a Financial Planning Client
5 Ways to Help Your Clients Experiencing Grief
A screen shot of a stick figure shouting through a bull horn with an empty dialog bubble above her.
Blanket Recommendation
Financial Advisors Should Cater to Small Business Needs
Risk management
Should You Manage Your Friends Money?
Regulatory Compliance
What Advisors Need to Know About Rule 3210
How to Launch a Wealth Management Firm
Top Places to Work for Financial Advisors
10 Best Tools for Financial Advisors
Suze Orman
Famous Women Financial Advisors
Where to Find the Ideal Client for Your Practice
4 Associations Financial Advisors Should Join
stock market
Investment Adviser Registration Depository (IARD)
Woman Working in Home Office
5 Must-Read Blogs for Financial Advisors
Tips for Assessing a Client's Risk Tolerance
How to Sell Life Insurance Online
What the Next Decade Holds for Financial Advisors
Top Tips for Young Financial Advisors
5 Growth Strategies for Financial Advisors
Talk About Financial Constraints to Your Clients
How Financial Advice Can Boost Your Returns
Top Reasons Why Advisors Should Go RIA
Female Financial Advisor Working With Couple in Home
Tax Tips for Financial Advisors
Tips for Breaking the Ice With New Clients
What Advisors Can Learn From Ultra-Wealthy Clients
Top Referral Tips for Financial Advisors