Financial planning is a complex field that requires a great deal of knowledge to understand. As a result, many people are turning to professional financial planners to help them manage their money. When it comes to fees, however, the question of “How much do fee-based financial planners charge?” is a common one. This article will explore the different types of fees charged by fee-based financial planners and what you should expect to pay.

What Is a Fee-Based Financial Planner?

A fee-based financial planner is a professional who provides financial planning services for a fee. This fee can be charged on an hourly basis, a flat fee, or a percentage of the assets managed. In most cases, fee-based financial planners will provide comprehensive services, such as investment advice, financial planning, and estate planning. Some fee-based financial planners are also certified public accountants (CPAs) or certified financial planners (CFPs).

Types of Fees

When it comes to fees, there are three main types that fee-based financial planners charge:

Hourly Fees

Hourly fees are the most common type of fees charged by fee-based financial planners. This type of fee is based on the amount of time it takes the financial planner to complete the services requested. Generally, hourly fees range from $100 to $300 per hour, depending on the complexity of the services requested.

Flat Fees

Flat fees are a one-time fee for financial planning services. These fees are usually based on the complexity of the services requested and can range from a few hundred dollars to a few thousand dollars. Flat fees may also include additional fees for certain services, such as investment advice or estate planning.

Percentage of Assets Managed

Some fee-based financial planners charge a percentage of assets managed. This type of fee is typically a percentage of the assets managed by the financial planner, such as stocks, bonds, mutual funds, and real estate. This fee is usually charged on a quarterly or annual basis and can range from 0.5% to 2% of the assets managed.

What to Expect When Working with a Fee-Based Financial Planner

When working with a fee-based financial planner, you can expect to receive a wide range of services. These services may include investment advice, financial planning, retirement planning, estate planning, tax planning, and more. You can also expect to receive detailed reports on your investments and financial plan, as well as regular updates from your financial planner.

How to Find a Fee-Based Financial Planner

Finding a fee-based financial planner is relatively easy. You can start by asking friends and family for referrals. You can also search online for financial planners in your area. When searching for a fee-based financial planner, make sure to research their experience, credentials, and fees. Additionally, make sure the financial planner is a good fit for your needs and goals.

Conclusion

The cost of a fee-based financial planner can vary greatly depending on the services requested and the type of fee charged. Generally, fee-based financial planners charge an hourly fee, a flat fee, or a percentage of assets managed. It is important to do your research and find a qualified and experienced financial planner who is a good fit for your needs and goals.