How Much Does It Cost To Hire A Financial Adviser?

Most people will at some point come to require the services of a professional in handling and managing their assets and wealth. Some may not have enough time to manage their wealth while others want continuous support along the way. This is where financial advisers come in. A good number of people seeking professional help get confused when it comes to paying the advisers. They are not sure how much they should pay for the services. Here are some of the different factors that dictate how much you may pay.

Financial Advisors for Portfolio Management

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One-Time Services

You probably require the services of a financial adviser for them to address a few issues you have. You probably want to ensure that you’re getting your money’s worth from your business or you want to ensure that your employees are receiving their benefits optimally. Setting up a one-time meeting with a financial adviser is a good option if you have no experience of working with them at all. Since you will have to pay up, the standard charges here are in the range of £240 – £350. This can also cover the cost of any follow-up communications after the first meeting.

Hourly Rates

These can apply if you have something like a project and you need enough time with the financial adviser to help you through the project. You can hire their services on an hourly rate. The standard rates here are in the range of £120 – £250. However, note that this largely depends on the complexity of the project. Some projects may require you to pay through your nose for these services.

Type of Adviser

The fee paid to advisers varies depending on the kind of adviser they are. Some financial advisers and companies are fee-only fiduciaries and do not accept commissions. Others accept commissions while others offer their services on a consultancy level. It’s important to know the exact kind of services you as a customer are paying for to ensure you get the right services.

Portfolio Management

A good number of advisers also offer their services in managing your investments. Most of them have a distinction between giving advice on how to allocate your assets and managing them. The fee for those that manage your portfolio ranges from 2% to 25%. This is dependent on the value of assets in question. Some advisers, however, have the comprehensive financial planning fee and the asset management fee included in the Assets Under Management (AUM) fee. This is actually the fee which most registered investment advisers charge.

Cost of Transaction

If you involve a financial adviser when purchasing or selling an investment, depending on the terms of your work relationship or the firm which your adviser works for, he or she may get a cut of the transaction costs. This doesn’t apply if the company or your adviser is fiduciary since they work on a fee-only basis – they don’t expect any extra expenses from your transactions.

There you have it, a simple guide to help guide you figure out how much and how you should pay for expert financial services. Was this article helpful?

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