How Much Does a Financial Advisor Cost?
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A financial advisor costs a few hundred to a few thousand dollars per year. The fee largely depends on the services you’re paying for, as well as the fee structure the advisor uses. Your geographic area and other factors can impact costs, as well.
Nerdy takeaways 💡
Financial advisors may offer several different cost-structures, including annual AUM fees, a flat annual or monthly fee, an hourly rate, a one-time financial plan fee, or, for some advisors, commissions.
It's important to understand the incentives different cost structures create. Commission-based advisors may be under pressure to generate commissions, and they may not give advice that is in your best interest.
Cost is just one consideration. It’s important to look for a financial advisor that suits your needs. If you're after basic investment management of a relatively small account, a flat fee of $2,000 a year is likely too much. But if you have six figures to manage, working with the cheapest advisor you can find may mean you won't receive the depth of financial advice you may need.
» Just starting your search? See our guide on how to choose a financial advisor.
Financial advisor fees
A summary of typical financial advisor fee ranges is below.
Fee type | Typical cost |
---|---|
Assets under management (AUM) | 0.25% to 0.50% annually for a robo-advisor; about 1% for a financial advisor. |
Flat annual fee (retainer) | Typically $2,500 to $9,200. |
Hourly fee | $200 to $400. |
Per-plan fee | Typically $3,000, but the cost will vary by service. |
Commission | 3% to 6% of investment transaction amount. |
To compile this information, we reviewed industry studies on average rates among financial advisors in 2024. Those studies included:
We also reviewed fees charged by providers reviewed by the NerdWallet investing team. |
» Want to know how fees will impact your returns? Run the numbers in our financial advisor fee calculator.
Financial advisor fees by service
Financial advice comes in many shapes and sizes. In some cases, the cost of service will depend on the type of service you choose.
Investment management only
If you’re specifically interested in investment management (maintenance of an investment portfolio), a robo-advisor may be your best low-cost choice. Robo-advisors are computer-based services that help you choose and manage investments. They will build and manage an investment portfolio for you based on your goals, time frame and risk tolerance. Robo-advisors often require no or a low account minimum, so it's easy for beginners to start investing.
Cost: Robo-advisors typically charge an AUM fee of 0.25% to 0.50%, which works out to $125 to $250 a year on a $50,000 account balance.
What you get for that fee: Portfolios are built and monitored with computer algorithms. Robo-advisors generally don't provide customized financial plans or personalized investment advice.
» Check out our roundup of the best robo-advisors
Financial advice plus investment management
If you’re looking for financial advice — or financial advice plus investment management — the costs vary more widely. It’s often related to the level of service you’re looking for. Below, we breakdown the most common fee structures, including what you could expect to pay and what you get for that fee.
Keep in mind that "financial advisor" is a broad term, and it includes varying credentials, such as investment advisors. We recommend working with a certified financial planner due to their deep expertise.
AUM fee
Most advisors charge based on how much they manage for you. They may also set account minimums. For example, some advisors don’t think the fee they would collect on a small balance is worth their time and won’t take on clients with less than $250,000. Still, there are numerous options with lower or no account minimums.
Cost: The median AUM fee among human advisors is about 1% of assets managed per year, though they can be as low as 0.30%. It’s also common to see AUM fees reduced as investment balances increase.
What you get for that fee: You'll typically have an ongoing relationship with a team of advisors or a dedicated advisor.
The advisor's AUM fee depends on your assets. For example, a client who invests $10,000 with an advisor who charges a 0.50% management fee will pay $50 a year, while a client who has $100,000 invested will pay $500.
» Check out our roundup of the best financial advisors.
Retainer for services
A set monthly or annual fee. The cost usually isn’t linked to how much you have available to invest, but you may pay more if your situation is complex.
Cost: Typically $2,500 to $9,200 a year.
What you get for that fee: Typically, comprehensive planning and investment management. The advisor will create a financial plan, help you implement it, monitor your progress and adjust as needed.
Hourly rate
Some financial planners have a set hourly rate, which doesn’t change based on your asset level. You only pay for the time you need.
Cost: $200 to $400 an hour.
What you get for that fee: You can schedule a few meetings to check your retirement savings progress, plan for the kids' college or get a workable budget. Or, if you want a full financial plan, you can get that. You carry out the plan on your own and there is no ongoing oversight from the provider unless you request and pay for additional time.
Flat fee per plan
Some advisors charge a flat fee for creating a financial plan. There is no ongoing management or oversight; you carry out the plan yourself.
Cost: The cost will vary by service, but $3,000 is typical for a financial plan.
What you get for that fee: A comprehensive financial plan and guidance for how to follow it, but no ongoing services or investment management. The advisor charges a set fee for each type of service. You’ll get an outline of what's included and see the fee upfront.
Commission
Sometimes advisors are paid through commissions on the investments they recommend (and those commissions come out of your pocket).
Cost: Varies by investment, but mutual fund sales loads generally fall between 3% and 6% of your investment. This is a one-time fee paid at the purchase or sale of the fund.
What you get for that fee: Typically, only investment management. We often recommend avoiding commission-based financial advisors: While some undoubtedly put your needs first, others may be swayed by the product that pays the highest commission. And the advisor may only be required to recommend investments that are suitable for you, but not necessarily the best fit.
» Ready to act? 5 ways to find a financial advisor

Why a financial advisor's fee structure matters
No matter which type of financial planning service you choose, be sure to understand exactly how much you'll pay for services and what the services entail. That's especially important because there are so many different payment structures used. Before hiring an advisor, know these terms:
A fee-only advisor doesn’t earn any commissions from investments. These advisors face the fewest conflicts of interest when offering advice. Fee-only advisors may still piece together more than one fee — for example, charging an AUM fee for investment management and a flat fee for financial planning.
A fee-based advisor charges a fee but may also accept commissions from investments. Many advisors combine commissions with an AUM fee.
A commission-only advisor earns their income from commissions on the investments bought and sold on your behalf.