Generally, financial advisors charge a flat fee of $1,500 to $2,500 for the one-time creation of a full financial plan, or 1% to 2% of assets under management for ongoing portfolio management.
However, fee rates and compensation structures differ from advisor to advisor.
Is it worth paying for a financial advisor?
Financial advice typically costs 0.5 percent to 1 percent of your portfolio per year. So, yes, people want to know if they are getting what they pay for. Russell estimates a good financial advisor can increase investor returns by 3.75 percent. Not everyone wants or needs a financial advisor.
How do financial advisors get paid?
Here is an average breakdown of what those costs could look like for each of the ways advisors are paid: Commission: The average commission is based on a percentage of your investment in a fund, which falls between 3–6%. Hourly fee: The average hourly financial planner fee ranges between $120–$300.
Are Edward Jones fees high?
High Fees — The investment management fees are over 1% per year, unless your portfolio is larger than $2.5 million. Along with the high commissions, this is not a platform to trade such investments. Potential to Churn Accounts — This isn’t an issue that’s specific to Edward Jones, but any full-service broker.
How much does Edward Jones charge in fees?
A-share mutual funds have a large up-front fee and C-share funds have a level fee structure. The Advisory Solutions program requires a $25,000 account minimum and charges an annual fee ranging from 0.50% to 1.35% based on the amount of assets under management.