“The cost is exorbitant.” For months I tried to hire a financial advisor, but everyone I found was too expensive. what do i do?

Financial Advisors


question: I have tried to use the services of many financial advisors over the last few months but the costs are exorbitant. How can I find someone who charges a reasonable and fair fee? How much do you have to pay, and what consolation do you have if your budget is all gone?

answer: This may be the topic we get the most letters from.You are right that many financial advisors are expensive (often prohibitively expensive) for most of us. I have news. The industry and its fees are changing, and there are many advisors who charge reasonable fees. (Looking for a new financial his advisor? This tool will help match you with a planner that fits your needs.)

One of the big problems in the industry is that many advisors charge their clients based on assets under management (AUM) models. As such, they charge around 1% of the assets they manage. That percentage can reach thousands of dollars a year.

Having trouble with your financial advisor or looking for a new one? Send an email to picks@marketwatch.com.

However, not all advisors work this way. Certified Financials More and more young millennials and Generation Z seek financial advice, according to his planner David Barfield. “They are looking for advice rather than investment management, and fees are more affordable as a result of this shift towards planning,” Barfield says.

The good news here is the abundance of options available. The fees charged by advisors and their fee structures vary greatly. It is important to consider the potential value of the financial advice you are receiving, not just the cost. (Looking for a new financial advisor? This tool will help match you with a planner that fits your needs.)

Having trouble with your financial advisor or looking for a new one? Send an email to picks@marketwatch.com.

How to find a financial advisor with low fees

For example, there are a growing number of fixed-fee, advice-only advisors who can provide financial planning and ongoing support.

“Prices can start at $100 per month, but a typical client should expect a range of $250 to $500 per month, depending on complexity. There is some kind of pre-planning or onboarding fee due to the intensity of the work in stages,” says Barfield. A good rule of thumb for creating a flat fee for a comprehensive financial plan is typically in the $1,500 to he $3,000 range, and the onboarding fee (if applicable) can amount to hours of advice. To determine if this type of plan is best for you, you may find this article on financial by the hour his planner and this article on what to ask yourself before hiring a planner.

For financial planning services, Elyse Foster, a certified financial planner at Harbor Welth Management, said you should expect to pay about $200 to $300 per hour, or about $2,000 to $5,000 as a retainer. I’m here. “Most fee-only CFPs develop a financial plan that does not include investment advice, estimate fees based on how long it takes to collect data, determine client goals, schedule computers and schedule one or two meetings. Prepare more than once, follow up and execute the plan,” says Foster.

Some planners offer a one-time fee option for a consultation, perhaps in the $2,000 to $10,000 range, but it may be more accessible in some circumstances,” says Progress Wealth. says Blaine Ceiderman, a certified financial planner at Management.

Don’t just accept 1% ​​for wealth management services. Foster said ranges between his 1% and 0.50% of assets under management are common. “This fee varies by investment. A portfolio composed entirely of exchange-traded funds (ETFs) can be less expensive than a portfolio containing individual stocks, alternative assets, and actively managed investments offshore. It also depends on the amount of assets you manage,” says Foster. (Looking for a new financial his advisor? This tool will help match you with a planner that fits your needs.)

Remember, you can always negotiate your advisor’s fees before agreeing to any fees and terms. Marketwatch Picks explains how to negotiate an advisor’s rate.

Sites such as the Garrett Planning Network, the XY Planning Network, and NAPFA’s Find an Advisor tool can help you find planners who offer project-based hourly services. Here are 15 questions to ask your prospective advisor while searching.

While the value of financial advice can be difficult to quantify, it’s important to consider more than just the financial impact of paying a professional. “You probably want a comprehensive financial plan for your future, and having such a plan reduces uncertainty and can make life much less stressful. Put it in money.” It can be very difficult,” says James Kinney, certified financial planner at Financial Pathway Advisors. (Looking for a new financial advisor? This tool will help match you with a planner that fits your needs.)

Having trouble with your financial advisor or looking for a new one? Send an email to picks@marketwatch.com.

Want to spend even less?you have two options here

That said, these prices may still be out of your budget. So if a complete financial planner is out of your budget, Carmichael Hill & Associates certified financial planner Matt Bacan recommends considering his hybrid approach.

“Pay a planner for an hour or two to get a high-level picture of where you need to focus your efforts. Do their recommendations yourself and help manage your investment.” Use a robo-advisor if you want a fraction of the cost of a human planner and build a perfectly adequate and diverse portfolio,” says Bacon. (Looking for a new financial girlfriend advisor? This tool will help match you with a planner that fits your needs.)

There are cheaper options to investigate, depending on what you’re looking for. “A lot of people search his Reddit and online forums to find financial advice, but be careful, it’s often wrong,” he says.

Through Advisors Give Back, a non-profit organization run by financial planners, you can also work with pro bono planners to help those who cannot afford to provide financial planning services.

Having trouble with your financial advisor or looking for a new one? Send an email to picks@marketwatch.com.

Another option is to teach yourself how to build a simple investment portfolio. According to Kinney, that’s the easy part. “Learning to control my emotions about money is very difficult. Decades of market ups and downs have taught me that selling an investment in the middle of a recession is a terrible idea. But unfortunately, when things get scary, emotions often win out over good sense,” says Kinney. So having a good advisor to put you at ease, calm your emotions, and help you stick to your long-term investment plan can go well beyond the fees you pay.

Having trouble with your financial advisor or looking for a new one? Send an email to picks@marketwatch.com.



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