How Much Will A Financial Plan Cost Me?

I have previously discussed the value of working with a financial advisor. The Vanguard Group values the return on investment at around 3%. The benefit of hiring a financial advisor is that you will be far more likely to achieve your goals. Much like doctors and lawyers, people often have sticker shock when it they hear the price. As a fee only financial planner, I offer several fee based pricing models.

What I hope to do over the next few articles is provide you with the information you need to make an informed decision about what to spend on a financial plan. You'll understand the various fee structures available in the financial planning industry. I will also provide you with the pros and cons of each.

Fee Only Advice

Before starting to work with any financial advisor, that advisor must present you with a form called the ADV. Form ADV is a detailed summary of the contract, services, costs, and advisor history. I work with clients on either an hourly basis, project based rate, or through management fees on assets held under management. I charge $150 an hour; billed in 15 minute increments. For project based rates, my range runs from $500 to $5,000. My charges for managing assets on how much I will be managing. The chart below breaks down the expense ranges.


What this means is to you that you have the option of working with me on an hourly basis. You can also choose to pay under for a larger project, such as a comprehensive retirement plan, under the project based fees. This is done on a discounted rate when compared to an hourly project.  Finally, you choose to have me manage your portfolio for a small percentage of the money I’m managing. Which one works best?  That all depends on your situation. I’ll break down options over the next four posts.

What I want you to understand is what the fee structures are. The industry offers you options for fee only planning as well as commission bases sales. I want the reader to understand how these costs work. I will cover a few pros and cons of each. Finally, I want to let you know which fee structure works best based on a client’s situation.