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How Much Does a Financial Advisor Cost?

Published Jan. 22, 2026
Jake FitzGerald
Author: Jake FitzGerald
Jake FitzGerald
Jake FitzGerald
Editorial Strategist

Jake FitzGerald is a full-time Editorial Strategist and Personal Finance Writer at Motley Fool Money, leading content production and distribution while also writing about credit cards, bank accounts, and other financial products. He has more than a decade of experience editing and shaping financial content to give readers clear, trustworthy money advice. His work focuses on delivering practical insights that empower people to make smarter financial decisions. Off the clock, he’s a fan of college football tailgates and still loyal to his favorite putter -- despite what his short game suggests.

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Hiring a financial advisor is often a smart move, but hiring one without understanding the cost is not.

Some advisors are fairly priced for the value they deliver. Others quietly collect fees for years without meaningfully growing your cash.

Here's how much financial advisors cost, the most common fee structures, and how to tell whether you're paying for real advice or just convenience.

What determines the cost of a financial advisor?

There is no universal price tag for financial advice. Costs are shaped by a few key factors.

  • How you're charged: Some advisors take a percentage of your investments, others charge flat or hourly fees, and some earn commissions behind the scenes.
  • What services you're getting: Ongoing investment management costs more than a one-time financial plan. Retirement planning, tax strategies, and estate coordination all add complexity.
  • How much money you have: With some fee structures, your cost rises automatically as your assets grow, even if the work doesn't change.
  • Whether the advisor is a fiduciary: Fiduciary advisors are legally required to act in your best interest. That doesn't always mean cheaper, but it does affect incentives.

Common financial advisor fee structures

Most advisor costs fall into a handful of categories. This is where the numbers start to matter.

Percentage of assets under management (AUM)

This is the most common model.

Advisors charge a percentage of the assets they manage for you, typically between 0.50% and 1.50% per year.

If you have $250,000 invested and pay a 1.00% fee, that's $2,500 annually. At $1 million, it's $10,000 a year.

The fee is usually deducted automatically, which makes it easy to overlook. Over decades, this structure can quietly cost six figures or more in lost growth.

Flat-fee financial advisors

Flat-fee advisors charge a fixed dollar amount, often for a defined scope of work.

Common ranges include:

  • $1,000 to $3,000 for a one-time financial plan
  • $2,000 to $7,500 per year for ongoing advice

This model is easier to understand and doesn't rise automatically as your portfolio grows. It tends to work well for people who want planning help without full-time investment management.

Hourly financial advisors

Hourly advisors are exactly what they sound like.

Rates typically range from $150 to $400 per hour, depending on experience and location.

This option works well if you have specific questions or want a second opinion. It is often the most cost-effective route for DIY investors who just want professional validation or targeted guidance.

Commission-based advisors

Some advisors earn money by selling financial products, such as insurance policies, annuities, or certain mutual funds.

You may not pay an explicit fee, but the cost is built into the product itself. This can create conflicts of interest, especially if the advisor is not acting as a fiduciary.

If you go this route, it is critical to understand how the advisor is compensated and whether alternatives exist. Our overview of what a financial advisor is explains these distinctions in more detail.

Robo-advisor costs

Robo-advisors use algorithms to manage your investments, usually with minimal human involvement.

Most charge 0.25% to 0.40% per year, plus the cost of the underlying funds.

On a $100,000 portfolio, that's roughly $250 to $400 annually. Robo-advisors can be a low-cost option for hands-off investors with straightforward needs.

Hidden and indirect costs to be aware of

The advisor's stated fee is not always the full cost.

Investment expense ratios can quietly add another 0.05% to 0.50% per year. Trading costs, fund turnover, and tax inefficiencies also matter.

Over time, these indirect costs can rival or exceed the advisor's headline fee. This is why asking clear questions upfront matters. Our list of questions to ask a financial advisor can help you surface these issues early.

Is a financial advisor worth the cost?

A financial advisor can be worth paying for if you:

  • Need help coordinating investments, taxes, and retirement planning
  • Are nearing retirement and want a withdrawal strategy
  • Want behavioral coaching during market volatility

But paying ongoing fees for basic asset allocation or simple index investing often isn't necessary.

The key question is not, "How much does a financial advisor cost?" It's, "What am I actually getting for that cost?"

If the answer is clarity, confidence, and better decisions, the fee can be justified. If the answer is generic portfolio management, it may not be.

Compare financial advisor costs with a matching tool

One of the simplest ways to evaluate cost is to compare real advisors side by side.

A matching tool like SmartAsset can show you multiple vetted advisors in your area, how they charge, and what services they offer. You can see fee structures upfront and decide whether the value aligns with your needs.

That comparison alone can save you thousands over time.

If you want to explore your options, this no-cost quiz from our partner, SmartAsset, makes it easier to find a fiduciary financial advisor.