Financial advisors commonly charge around 1% of the assets they manage annually, or $200–$400 per hour.
A one-time financial plan averages approximately $3,000, while ongoing flat-fee advice typically costs $2,500–$9,200 per year.
For example, a 1% fee on a $500,000 portfolio costs $5,000 a year, before additional investment expenses.
How much do financial advisors charge?
Financial advisors commonly charge around 1% of managed assets annually, $200–$400 per hour, or approximately $3,000 for a one-time financial plan. Ongoing flat-fee advice typically costs $2,500–$9,200 per year, while commissions vary by product.
Looking for financial advice?
Your total cost depends on your portfolio size, financial needs and services included. For example, a 1% fee on $500,000 costs $5,000 annually, before additional investment expenses.
What are the different types of financial advisor fees?
Financial advisors use five main fee structures, sometimes in combination:
- Assets under management (AUM): Around 1% annually, or $3,000 on $300,000. Check minimum fees and included services.
- Hourly: Typically $200–$400, potentially including preparation and follow-up time.
- One-time financial plan: Around $3,000, depending on complexity. Implementation and ongoing support may cost extra.
- Annual flat fee or retainer: Typically $2,500–$9,200 for ongoing advice. Investment management may cost extra.
- Commissions: Product-specific payments from investment or insurance sales. Fee-based advisors may also charge fees; fee-only advisors receive no sales commissions.
Hourly and one-time fees can be more economical for specific advice, while AUM and retainers suit ongoing support.
For larger portfolios, compare the annual dollar cost of an AUM fee with a flat fee: a higher bill does not necessarily mean more services.
How much would you pay based on your portfolio size?
The average financial advisor fee is about 1% annually. At that rate, you would pay $2,500 on $250,000 or $10,000 on $1 million. Here’s how different rates compare:
Managed portfolio | 0.50% annual fee | 1% annual fee | 1.50% annual fee |
|---|---|---|---|
$100,000 | $500 | $1,000 | $1,500 |
$250,000 | $1,250 | $2,500 | $3,750 |
$500,000 | $2,500 | $5,000 | $7,500 |
$1 million | $5,000 | $10,000 | $15,000 |
Illustrative costs assume a constant balance and one rate applied to all managed assets. Additional expenses and minimum fees are excluded.
As your portfolio grows, small percentage differences become more significant. On $1 million, paying 0.50% rather than the 1% average saves $5,000 annually, provided the services meet your needs. Some advisors use tiered pricing, applying lower rates to portions of your balance, so ask for your effective rate and total annual cost.
Robo-advisors vs. human advisors: How do costs compare?
Robo-advisors typically charge 0.25%–0.50% of managed assets annually, compared with around 1% for human advisors. On $100,000, that’s $250–$500 versus $1,000 a year, before additional investment expenses.
- Robo-advisors: Automate portfolio selection and rebalancing. For example, Wealthfront charges 0.25% annually for automated investing.
- Human advisors: Provide personalized guidance and may include retirement planning, tax strategies and regular meetings. For example, Schwab Wealth Advisory fees start at 0.80% annually.
- Hybrid services: Combine automated investing with access to human advice. For example, Vanguard Personal Advisor charges approximately 0.30%–0.31% annually for its all-index option.
If you mainly need portfolio management, automation may offer better value. Human advice may justify higher fees for complex planning, while hybrid services offer a middle ground in cost and support.
What does a financial advisor’s fee cover, and what costs extra?
Two advisors charging 1% can offer different value: one may only manage investments, while another includes broader planning. Depending on your agreement, the fee may cover:
- Investment management: Portfolio selection, monitoring and rebalancing.
- Retirement planning: Savings targets, Social Security decisions and withdrawals.
- Tax and estate guidance: Coordinating investments with taxes and inheritance goals.
- Ongoing support: Regular meetings, progress reviews and plan adjustments.
Fund expenses, account or transaction charges, tax preparation and legal documents may cost extra. For example, 1% for advice plus 0.20% in fund expenses totals $6,000 annually on a constant $500,000 balance, before other charges.
Ask for a written breakdown of services and total costs. A broader package is better value only if you use the additional support.
"It can be daunting paying for financial advice, but it should add more value than it costs – and benefit you in the long term.
For example, optimising your pension strategy so you have a fund with lower fees and a track record of strong performance could pay dividends when you retire, although there are no guarantees.
There are other benefits as many people who received financial advice have a clearer understanding of their money goals, more confidence in retirement planning and experience lower financial stress, according to research by Unbiased.”
Is a 1% financial advisor fee worth it?
A 1% fee may be worthwhile if it covers ongoing planning you need, such as coordinating retirement withdrawals, taxes and investments. It is harder to justify for basic portfolio management when lower-cost options are available.
✅ A 1% financial advisor fee may offer value when your finances are complex and you regularly use the advisor’s services.
- For example: A couple with $1 million approaching retirement may pay $10,000 annually for help coordinating Social Security, retirement-account withdrawals, taxes and estate planning.
🤔 A 1% financial advisor fee may be less worthwhile when your needs are straightforward and you rarely use the planning services.
- For example: Someone with $500,000 in a simple index-fund portfolio would pay $5,000 annually for management they may be able to handle through a lower-cost service or occasional consultation.
How can you compare and reduce financial advisor fees?
When you compare financial advisors, compare each advisor’s total annual cost in dollars and the services included, rather than focusing only on the fee structure.
For example, a couple with $750,000 could pay $7,500 annually at 1% of AUM, around $4,000 for ongoing flat-fee advice or $3,000 for 10 hours of advice at $300 per hour. If they need regular investment management and retirement planning, the ongoing options may offer better value. If they only need a retirement plan and can manage their investments, choosing hourly advice could save $4,500 in the first year.
How much does a financial advisor consultation cost?
An initial consultation is often free and usually covers your goals, the advisor’s services and their fees. It generally does not include a detailed financial plan or personalized recommendations.
A paid consultation typically costs $200–$400 per hour, although the price depends on the advisor and complexity of your needs.
Unbiased can match you with a financial advisor for a free initial consultation below.
Frequently asked questions
How much is a financial advisor per month?
Ongoing flat-fee advice typically costs $208–$767 per month, based on annual fees of $2,500–$9,200. AUM-based advisors usually calculate fees annually and deduct them monthly or quarterly.
Are financial advisor fees tax-deductible?
Personal financial advisor fees are not deductible from federal taxable income in 2026 because investment-management fees cannot be claimed as miscellaneous itemized deductions. For example, paying an advisor $5,000 does not reduce your taxable income by $5,000.
Are financial advisor fees negotiable?
Fees are often negotiable, but a reduction is not guaranteed. Your chances are strongest before signing and when investing a larger amount; standardized services and robo-advisor fees are usually fixed. Check the firm’s Form ADV Part 2, which must disclose whether its fees are negotiable.
What is a reasonable fee for a financial advisor?
Around 1% annually is common for ongoing investment management and planning. However, a reasonable fee depends on the services provided: paying 1% may be excessive if you only need basic portfolio management.
How much money do you need for a financial advisor?
There is no universal minimum. Hourly and flat-fee advisors may not require investable assets, while AUM-based firms can require $25,000 to $1 million or more. For example, Schwab Wealth Advisory requires at least $500,000.