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The True Cost of a Financial Advisor, Revealed

IN THE PRESS:

In a society where people turn to social media for help deciding between paint colors, it’s unthinkable that so many of us continue to entrust our financial futures to... ourselves.

As research consistently reveals, working with a financial advisor nets investors an average of 1.5% to 4% in additional annual returns.1 Planning for retirement without the benefit of a financial advisor’s keen insights has grown more and more irrational.

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SmartAsset is a personal finance technology company that features a financial advisor matching service. Financial Advisors who appear on SmartAsset are from companies with which SmartAsset receives compensation. SmartAsset takes into consideration wealth and location to determine how to match users with advisors. SmartAsset doesn't include the entire universe of Financial Advisors.

Sources:
1. The Return on Advice (2016), Envestnet, Capital Sigma.
4. How Much Does A Financial Advisor Cost (2020), SmartAsset, Becca Staneck CEFP.

But for many other Americans, the reason they’ve never enlisted the help of a financial advisor is they simply don’t know where to find one, or how to evaluate their proficiency and pricing.

That’s why we created a free quiz to help Americans find and vet qualified financial advisors near them.

This quiz asks about your financial goals, then matches you with three fiduciary financial planners fit to serve your needs. You can compare your advisor matches based on their specialty, pricing, and more. You even earn 3 free consultations with each of our matches, so you’ll be fully prepared to pick the best advisor for you.

Average Financial Advisor Fees

Fee Type

Type Cost

Percentage of Assets Under Management

Fixed Fees

Hourly Fees

1% - 2% per year

$1,000 - $3,000

$100 - $400 per hour

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So, why do some Americans continue to walk the financial road alone?

For some, the excuse is the false assumption that they can’t afford it. In actuality, the fees financial advisors charge are often less than most people think, and the insights they add often surpass an advisor's cost.

 The truth is, financial advisors often charge a percentage fee for Assets Under Management (AUM) of between 1 - 2%.1 A 2017 AdvisoryHQ study found that the average AUM fee for a $50,000 account was about 1.18% or $590.2 Many Advisors also charge hourly fees of between $100 - $300 and between $1000 - $3000 for special projects.3

Click Your State to Get Matched With Financial Advisors Near You

After you choose your state and answer questions about your financial goals, you can compare up to three advisors local to you and decide which to work with.

Investing involves risk and no situation is the same. This is in no way intended as a personal recommendation and investment decisions are solely those of the reader.

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Advisor Fees vs. Average Returns