KEY TAKEAWAYS:
- The cost of a financial planner varies widely, from a few hundred dollars to several thousand, depending on services and pricing models.
- Common fee structures include:
- AUM fees: Typically 1% to 2% of assets under management.
- Annual fees: Often $2,000 to $8,000 per year.
- Hourly fees: Generally $200 to $500 per hour.
- Per-plan fees: Usually $1,000 to $3,000 per plan.
Some financial planners charge flat fees, while others use commission-based or hybrid models.
A financial planner reviews your current financial situation and helps you build short-term and long-term strategies to achieve your financial goals. Whether you’re trying to get out of debt, save for a home, or retire early, a financial planner can help design a personalized plan to keep you on track.
While many people think financial planners are only for the wealthy, that’s not the case. In addition to helping with complex needs like investment management, tax strategy, and estate planning, many planners also offer accessible services for everyday financial goals. If you’re looking for expert guidance to help reach your goals more efficiently, now could be a great time to start working with a planner.
Wondering how much it costs? In this article, we’ll break down how financial planners charge for their services, how their fee structures work, and how to decide if it’s the right fit for your situation. We’ll also highlight some more affordable alternatives to consider.
Put Your Cash to Work With Smart Yield
Smart Yield is our alternative to a high-yield savings account— automatically allocate your cash to strategic money market funds designed to help you keep more of what you earn, potentially with zero federal, state, or local taxes¹
LEARN MORE¹Smart Yield investment products are not FDIC insured and may carry risk. Past performance does not guarantee future results. Any yields offered exclude advisory fees and Carry’s membership fee. The service is offered by Carry Advisors LLC, our SEC-registered investment adviser, with brokerage services provided by Global Carry LLC and DriveWealth LLC, members FINRA/SIPC. See Smart Yield full disclosures and Carry Advisors Form ADV and CRS.
Fee Structure
Financial planners use a variety of pricing models depending on the type and depth of services they offer. Most commonly, advisors charge a percentage of assets under management (AUM), while others may charge a flat fee per hour, year, or plan.
| Fee Type | Typical Range |
| Assets under management (AUM) | 1% to 2% annually |
| Flat annual fee (retainer) | $2,000 to $8,000 per year |
| Hourly fee | $200 to $500 per hour |
| Per-plan fee | $1,000 to $3,000 one-time charge |
The cost often depends on the advisor’s experience, the complexity of your finances, and the services included. A reputable advisor should always explain their fee structure upfront and provide a clear estimate before you commit.
Let’s explore the different fee structures and what you can expect based on your specific situation.
Assets Under Management (AUM)
This is one of the most common models for traditional financial advisors. You pay a percentage of the total assets they manage for you. This is known as an AUM fee, which typically ranges from 1% to 2% annually. If you use a robo-advisor, AUM fees are generally between 0.25% to 0.50% annually.
✏️ Hypothetical Example: If a financial advisor manages $1 million for you and charges a 1% AUM fee, you’ll pay $10,000 per year.
Some financial planners offer a tiered fee structure, where they charge their standard rate up to a certain amount, then a lower percentage beyond that. For example, they might charge 1% or 2% on the first $250,000, then 0.8% on anything above that. As a result, you could end up paying lower fees when your portfolio performs well and produces larger returns.
Robo-Advisor AUM Fees
Robo-advisors use algorithms and automation to build and manage your portfolio based on your goals and risk tolerance. Since they involve little to no human oversight, their fees are typically lower than those of traditional financial planners, usually between 0.25% and 0.50% annually.
Flat Annual Fee (Retainer)
With this model, you pay a set amount each year for ongoing support. This fee covers regular check-ins, updates to your financial plan, and portfolio management. It’s ideal for those seeking comprehensive service without the fluctuations tied to portfolio size.
A flat fee can offer more predictable financial planning costs. This approach may help align advisor incentives, as their compensation isn’t directly tied to the size of your assets. Annual retainers typically range from $2,000 to $8,000, depending on the complexity of your financial situation and the advisor’s expertise.
Hourly Fees
If you only need advice once in a while, an hourly fee structure might be right for you. Hourly rates typically range from $200 to $500, though highly specialized advisors may charge more. This option is best for one-time consultations or help with specific issues like budgeting or debt payoff, though costs can add up if you require frequent consultations.
Per-Plan Fee
Some planners offer one-time financial plans for a flat fee. These plans include an overview of your finances and specific recommendations for budgeting, saving, investing, or retirement planning. There’s no ongoing relationship, but it’s a great way to get expert insight upfront.
A financial plan usually costs between $1,000 to $3,000, depending on complexity.
How Much Do Financial Planners Typically Charge?
The cost of financial planning can vary widely depending on the services provided, the advisor’s fee structure, and the amount of money being managed.
For example, a 1% AUM fee on $10 million of assets under management would amount to $100,000 annually, while the same fee on $100,000 would cost just $1,000 per year.
Delivery and Complexity
How services are delivered and the complexity of your financial situation can significantly influence the cost. For example:
- Virtual consultations (phone, email, or video) may be cheaper than in-person meetings.
- If you have complicated finances, such as multiple income sources, business interests, or estate planning needs, expect higher fees due to the additional time and expertise required.
📌 Also read: Financial Planning for Entrepreneurs With Irregular Income
How to Save on Financial Planner Costs
If you’re looking for expert advice but want to keep costs down, here are a few practical strategies:
Use a Robo-Advisor
Robo-advisors are a more affordable alternative to traditional financial planners. They use algorithms to manage your investments based on your goals and risk profile. Most charge AUM fees between 0.25% and 0.50%, significantly lower than human advisors.
✅ Pros: Low fees, hands-off investing
❌ Cons: Limited support for complex needs like estate planning or advanced tax strategy
Get Advice from Your Bank
Some banks offer basic financial advice at no extra cost, especially if you’re already a client. This may be sufficient if your needs are simple (e.g., budgeting, savings plans, or retirement account setup).
✅ Pros: Free or low-cost access to financial guidance
❌ Cons: Advice may be biased toward the bank’s own products, which might not always align with your best interests
Disclaimer:
The Carry Learning Center is operated by The Vibes Company Inc. (“Vibes”) and contains generalized educational content about personal finance topics. While Vibes provides educational content and technology services, all investment advisory services discussed on this website are provided exclusively through its wholly-owned subsidiary, Carry Advisors LLC (“Carry Advisors”), an SEC registered investment adviser. The information contained on the Carry Learning Center should not be construed as personalized investment advice and should not be considered as a solicitation to buy or sell any security or engage in a particular investment, accounting, tax or legal strategy. Vibes is not providing tax, legal, accounting, or investment advice. You should consult with qualified tax, legal, accounting, and investment professionals regarding your specific situation.
The accounts, strategies and/or investments discussed in this material may not be suitable for all investors. All investments involve the risk of loss, and past performance does not guarantee future results. Investment growth or profit is never a guarantee. All statements and opinions included on the Carry Learning Center are intended to be current as of the date of publication but are subject to change without notice.
To access investment advisory services through Carry Advisors, you must be a client of Vibes on an eligible membership plan. For more information about Carry Advisors’ investment advisory services, please see our Form [ADV Part 2A] (https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=916200) brochure and [Form CRS] (https://reports.adviserinfo.sec.gov/crs/crs_323620.pdf) or through the SEC’s website at [www.adviserinfo.sec.gov] (http://www.adviserinfo.sec.gov/).