Many people believe that financial advice is only for the elite, but that couldn't be further from the truth. Today, there are plenty of financial advisors who cater to all types of clients, from those with just a few hundred dollars to invest, to those with millions. Some advisors even offer a subscription-based model, which is perfect for younger professionals who want the guidance of an advisor without committing to a traditional fee structure and ongoing relationship.

When it comes to pricing, there are several options available to clients. Some advisors charge a flat fee for their services, while others charge a percentage of the assets under management (AUM). This is known as an AUM fee and it's usually around 1% of the amount you invest with that advisor.

It's important to remember that working with a financial advisor is not just about investing your money. They can also help you with taxes, real estate, income and cash flow planning, employee benefits, hedging strategies, and estate options. These are all important factors that can impact your overall financial well-being.

Having proper financial advice can change a person’s life, but many people don’t know what advisors ACTUALLY do or how much they cost. And there are millions of people who think they can’t afford to work with an advisor, so they end up going at it alone.

This article covers general tips about financial advisors, exploring how professional financial guidance can be affordable, accessible, and transformative for individuals at all stages of their financial journey.

‍NOTE: Our team at AdvisorFinder does not advise clients, but rather we help people find and research financial advisors, as well as make financial advisors more accessible.

What do you want to pay?

What you want to pay depends on a few things: what services you need and how long you need them for.

If you’re looking for a one-time financial plan, you can expect to pay a one-time fee. The cost often depends on the complexity of your plan.

If you’re looking for on-going services and investment management, you’ll typically pay a percentage of Assets Under Management (AUM) or a fixed fee.

Be cautious with advisors who charge commissions - it’s an old way of doing business and usually costs the client more.

Here are some of the most common questions we’ve heard from people who are searching for advisors:
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How much does it really cost?

Nowadays, there are plenty of advisors who work with clients for the cost of a monthly gym membership or an annual flat fee. Some advisors work with clients on an advice-only basis, which means they don't offer ongoing investment management, which can save clients money if the client wants to do the investing themselves. In return, an advice-only advisor will help their clients develop a plan for a flat dollar amount. As you can see, there are many different pricing models that are more attractive to some clients who want lower-cost options without sacrificing the level of advice they receive. The 'new kid on the block' is the subscription-model. The subscription-model is great for younger professionals who want the advice of an advisor, without the commitment of paying a traditional AUM fee. There are options for anyone!

In most cases, financial advisors charge a 1% fee of the amount of money you invest with that advisor. This is called an AUM fee, a percentage of the Assets Under Management.

As you can tell, there are ample options for your unique situation. Also, it’s not always about where you currently are but more about where you want to be in the future. Your advisor can help you plan for your future, so you can sleep better at night without thinking about financial stress.

Pricing Models and Specific Costs

Flat Fee Ranges:

• One-time financial plan: $1,000 - $3,000
• Basic financial planning: $2,000 - $5,000 annually
• Comprehensive financial planning: $4,000 - $10,000 annually

Assets Under Management (AUM) Fee:

• Typical range: 0.5% - 1.5% of total assets
• Example: On a $100,000 portfolio, annual fees would be $500 - $1,500

Subscription Models:

• Monthly fees: $50 - $300 per month
• Annual subscription: $600 - $3,600
• Tiered pricing based on complexity of financial situation
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Do I have to move over all my money?

You can move as much or as little as you want. In some cases, you don't have to move over any of your money, but this depends on the type of advisor you work with. You and your advisor should assess your current situation and determine what the best plan of action is for you. When you decide to work with an advisor, you don't have to move all your money over at once! Additionally, working with a financial advisor isn't only about investing your money. A financial advisor will likely look at opportunities to help you with the following:
- Taxes
- Real Estate
- Income and Cash Flow Planning (Active & Passive)
- Employee Benefits
- Hedging Strategies
- Estate Options

Many people look at financial advisors and just think about the stock market and how a financial advisor can help them invest their money. However, looking at the list above, you should feel confident that advisors go far beyond investments. Your financial advisor should look at both sides of the balance sheet and help you feel less financially stressed.
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When am I ready to work with an advisor?

It depends, but here are a few common reasons that people seek professional financial advice:

- Looking to buy a house
- Getting married soon (or recently married)
- New job
- If you're not confident investing alone
- Starting a family
- If you receive equity compensation

There are dozens of reasons why people choose to work with a financial advisor.
Above all, financial advisors are much more accessible than you think. They don't only work with the ultra-wealthy.

Here are a few things you can expect from an advisor based on the above reasons:
- Help to decide how much to spend on a house and guidance on how to buy it
- Looking over estate planning documents and assessing life insurance needs, especially if you have a family that depends on you
- Help navigate your equity compensation and stock options

Read our guide on How to Choose a Financial Advisor which includes a free quiz to determine which kind of advisor might be a good fit.
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If you're an adult with income and financial goals, you could probably benefit from unbiased external financial guidance. There is no "right" age or time to begin working with an advisor, but starting in your late twenties and early in your career can be a great time to get started with a financial advisor. The latter is especially true if you’re looking to settle down, thinking about marriage or kids in the next few years, working a high-paying job, or have financial stress from everyday life. Life itself can get in the way of your goals. Managing your finances can be stressful, especially when you have a full-time job or if you don't feel confident about planning for your and your family's financial future. Planning ahead will help you prepare for life’s greatest moments and challenges, which is where a financial advisor can help.

People don’t plan to fail, but fail to plan. We’ve heard over and over, “I’m too young to work with an advisor” or “I’ll wait until I settle down," but financial advice can be invaluable.

The impact of professional financial advice extends far beyond mere number-crunching. Research consistently demonstrates the tangible benefits of working with a financial advisor. According to studies from Vanguard and Financial Engines, individuals receiving professional investment guidance can potentially see returns improved by 1.5-2% annually. The CFP Board's research reveals that 67% of people working with a financial planner feel more confident about their financial future, while those with professional guidance have shown a 33% higher median net worth. Beyond the numbers, these advisors provide crucial support during economic uncertainties, helping clients develop more consistent investment strategies and feel more prepared for financial challenges.
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Related Resources

Consumer Financial Protection Bureau (CFPB) - Guide to Financial Advisors - A comprehensive resource providing unbiased information about financial advisor selection, rights, and potential red flags. Helps consumers understand their protections and make informed decisions.

Investopedia - Financial Advisors: What They are and What They do - An in-depth exploration of various financial advisor categories, compensation models, and specializations. Offers clear, accessible explanations for consumers at all financial knowledge levels.

Questions to Ask Before Hiring a Financial Advisor - acomprehensive list of critical questions to help users vet potential financial advisors, ensuring they find a professional who truly meets their needs.

‍Find Your Financial Advisor - an interactive quiz designed to connect users with financial advisors based on their unique financial goals, income level, and specific needs. Simplifies the often overwhelming process of advisor selection.

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Frequently Asked Questions About Financial Advisors

How much does a financial advisor typically cost?
‍Financial advisors have various pricing models, including percentage-based fees (typically around 1% of Assets Under Management), flat fees, and subscription-based models. Costs can range from a monthly fee similar to a gym membership to more comprehensive packages.

Do I need a lot of money to work with a financial advisor?
‍No! Financial advisors now work with clients at all income levels, from those with just a few hundred dollars to invest to high-net-worth individuals.

When is the best time to start working with a financial advisor?
‍There's no perfect time, but key life moments like getting married, starting a family, changing jobs, or feeling uncertain about investments are great opportunities to seek financial guidance.

What services do financial advisors provide beyond investment management?
‍Financial advisors can help with taxes, real estate planning, income and cash flow management, employee benefits, hedging strategies, and estate planning.

Do I have to move all my money to work with a financial advisor?
‍Not at all. You can move as much or as little as you're comfortable with, and many advisors can work with your existing financial setup.

What's the difference between an advice-only advisor and a full-service advisor?
‍An advice-only advisor provides financial planning and guidance without ongoing investment management, typically at a lower cost. A full-service advisor offers comprehensive investment management and ongoing support.

How do I know if I'm ready to work with a financial advisor?
‍Consider working with an advisor if you're experiencing major life changes, feeling stressed about finances, unsure about investing, or looking to create a comprehensive financial plan.

Are financial advisors only for wealthy people?
‍Absolutely not. Modern financial advisors cater to clients at all income levels, with flexible pricing models designed to make professional financial guidance accessible to everyone.