How Much Does a Financial Planner Cost?
Comprehensive Financial Review: $1,600-$4,000
A financial planner helps clients create formal plans to manage their money over the long term to reach their goals (such as retirement or sending children to college), including the flexibility to handle financial emergencies. In a related service, a financial adviser (also called an investment adviser) will assess a client's current financial situation, compare it to the financial plan, and recommend appropriate next steps to follow the plan. Most financial planners are also financial advisors, but not all financial advisors are financial planners. The Security and Exchange Commission provides overviews of financial planners[1 ] and investment advisers[2 ] .
- Certified financial planners generally charge in one of three ways: a fixed or hourly fee for a specific service (called fee-only); no fee but with a commission earned on the products bought; or a combination of a fee for the planning process and commissions on the products bought. The Financial Planning Association provides an overview of how planners charge for their services[3 ]. and Invest-FAQ.com describes the biases and potential conflicts[4 ] in each of the ways financial planners are compensated.
- Hourly rates can cost $100-$400, depending on location and the planner's qualifications, but average $175 an hour, according to Financial-Advisors.in. New Means Financial Planning, a fee-only service in New Hampshire, estimates that a financial consultation for clients in their
20s and early 30s can cost $540-$900, while a pre-retirement assessment could be $1,080-$1,800, and a comprehensive financial review might run $1,620-$3,960. Minerva Planning Group in Atlanta, Georgia, describes a sample retirement plan[5 ] that required seven hours of work at $190 an hour, for a total cost of $1,330. Flat fees (rather than hourly rates) are generally based on an average number of hours of work, and start around $400-$500 for basic financial plans and increase depending on the scope and complexity.
- Commissions range from 1 percent or less on money market accounts and treasury bills, up to 5.5 percent on mutual funds (which translates to $500-$2,375 on a $50,000 investment). Most financial planners will provide a half-hour or hour-long initial interview for free.
What should be included:
What People Are Paying - Recent Comments
Financial Planning Advice
Amount: $5,000.00 total
Posted by: Prasad
From: Kansas City, MO
Posted On: October 3rd, 2014 09:10AM
Commission or Fee Only: Fee Only
Type of Service: Financial Planning
Ran 5 different scenarios to cover our current assets and liabilities across three countries
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Category: Personal Finance