How much does a financial advisor in Roswell, Georgia, cost?
Other questions like this you may want answered:
- Do all advisors charge the same amount?
- How do I know what my financial advisor is making off me?
- Where can I find my advisors fees?
- Is the cost of my financial planner negotiable?
Determining how much a financial advisor costs requires looking at the different types of financial advisors and how they bill their clients. Of course, the easy answer is that a financial advisor can cost you everything if they're giving you poor advice that is not in your best interest.
Before I answer these question, I highly recommend you watch this video I recorded that goes through how to avoid running out of money and increase your retirement income. You are also invited to set up a short 20 minute free no cost and no obligation Retirement Ready Success call by clicking here. In this short call we will
- go over where you are now,
- where you want to be,
- and I will share with you some of the strategies I use with my clients to help them achieve financial freedom and peace of mind.
Commission-based financial advisors will typically sell you products, and they're compensated with commission from those products, whether it be a mutual fund or an annuity, life insurance, or health insurance. They can receive commissions from any type of product that they're selling you, including a REIT.
Fee-based financial advisors, which are the most common type, work at banks, insurance companies, and broker dealers. These advisors charge you a fee on your money in exchange for managing it, and they are also compensated by selling you products. For example, they might be managing your money at Edward Jones for a fee, and then they may also sell you a life insurance policy for commission, which means they are compensated in two different ways.
So how much does a financial advisor in Roswell, Georgia, cost? Now we are going to get specific.
The final type of financial adviser that we'll discuss today is the fee-only adviser. This is the type that Clark Howard recommends, and it is also the type that we are here at Third Act Retirement Planning. In Clark Howard's article he writes,
According to Barron’s magazine, some $17 billion is lost in retirement savings every year simply because dishonest financial advisors steer their clients toward investments that meet general suitability requirements but aren’t in the best interests of their client base.
The fee-only financial planner is only compensated by their clients, and not by any other product companies. They only sell financial advice, and not financial products. Fee-Only financial advisors may be paid hourly, as a retainer, as a percentage of assets (AUM), or as a flat fee, depending upon the planner you choose. Fee-only financial planners compensated by the amount of money they are managing will usually charge 1% to 2%. When compensated by the hour fees can range from $100 to $400 or based on your yearly income, which can range from 2% to 2.5% of your annual income. Here is Compensation and Fee Declaration we use that you may also download and use when evaluating a Financial Planner's pay: CompensationandFeeDeclaration.pdf
You now have a ballpark idea of how financial advisors are compensated and how much they cost. You can also click here to watch my free video on how to avoid running out of money in your retirement and how to potentially increase your income in retirement by making one simple change to your finances.