I Craft Personalized Wealth Blueprints for Architects and Engineers | Engineer Turned Financial Planner
Do you know how your advisor gets paid? Here’s a breakdown of the most common fee models, with average costs included: 1. Fixed Fees One-time services like creating a financial plan or retirement strategy. Costs typically range from $1,500 to $6,000. For clients looking for a custom plan without ongoing management. 2. Assets Under Management (AUM) Advisors charge a percentage of the assets they manage—usually 0.5% to 1.5% annually. For example, if you have $500,000, a 1% AUM fee would be $5,000 per year. 3. Monthly Subscription A flat monthly fee, ranging from $200 to $1,500, gives you ongoing access to financial advice. Ideal for business owners or clients who need regular guidance but don’t have large investable assets yet. 4. Hourly Fees Advisors may charge $250 to $500 per hour for services like creating financial plans. A comprehensive plan usually takes 10 to 20 hours, with a total cost ranging from $2,500 to $10,000. 5. Commissions Advisors who sell financial products may earn commissions, typically 3% to 6% on investments like mutual funds or annuities. For example, a $100,000 investment could come with a $3,000 to $6,000 commission.
I Help Busy AEC Professionals Invest Passively in Real Estate and Achieve Financial Independence | Real Estate Investor | Senior Associate/Senior Project Manager
2moThanks for the very helpful breakdown Ryan Sullivan, PE - it's so helpful to know there are different options that fit different situations.