Financial Advisor Fees

[7sdad]

We are about to start looking for a financial advisor and I was wonder what the typical fees/charges are to have a company handle your money?

[STGS]

Typically you are looking at 0.75% - 1.5% of the managed amounts, in addition to the fees charged by any mutual funds or other financial institutions.

Most are in the 1% range.

[RiverRat1]

Good luck figuring it all out. The more you dig the more fees you will find. All labeled differently so they have outs... Like you asked about this fee, not this other kind.

IMO it's more important to find a FA that will gladly explain all fees up front.


Have to be very careful or they'll suck you into a certain fund with a good fee rate...But then if you try to get some out you fall below the minimum $$ in that certain fund and fees jack up.

[Saltyag15]

Typically you are looking at 0.75% - 1.5% of the managed amounts, in addition to the fees charged by any mutual funds or other financial institutions.

Most are in the 1% range.

This. The advisor fees will fall in this range for pretty much everyone. The ones you need to watch out for are the mutual funds that incur fees themselves. Those fees get paid to the fund creators/managers, not necessarily to your advisor (unless it is their fund). I've seen one as high as 4%! Most of them are not that extreme, but they also won't be advertised.

[asu-indian]

PM Burnadell. He's a great TBHer. Oh and you owe me 5% now. lol.

[BigValley]

Vanguard only charges 0.3%


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[jbw899]

Pay attention to the fees the advisor is charging and the fees of the funds they’re putting you in. Combined those fees can end up costing you hundreds of thousands. I just put mine in low cost index funds and forget out it because it outperforms advisors long term.

[scott123456789]

Spending a couple hours reading about a three fund portfolio could save you thousands of not millions of dollars in your life time. Advisors aren’t going to do better than the total market 85% of the time.

Or even more simplified
If you are 30ish years old split your money 90% VTI 10% BND.
If you are 50ish split your money 70/30.
If you are nearing retirement maybe 50/50.

That’s all an advisor is going to do but will cost you exponentially more.

[scott123456789]

Vanguard only charges 0.3%


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Everything I’ve read about the advisory services you’d do just as good with a target date fund and save the %.

[HogHunter34]

Get ready to hear about annuities

[scott123456789]

We are about to start looking for a financial advisor and I was wonder what the typical fees/charges are to have a company handle your money?

What made you decide it was about time?

[hero_moneybags]

What made you decide it was about time?

^^^ This. Everyone’s financial situation is different and they have all have different needs as far as planning goes.

[jaspermac]

If you go fee based, be sure you are billed each quarter instead of once a year.

[RiverRat1]

Get ready to hear about annuities

Funny but true. Plus a few others like long term care.


I may complain about FAs and fees but IMO now is the time to go through a good FA. Not sure how else to buy good bonds easy.

And I'd ignore the standard splits stocks/bonds. One needs to start leaning more towards bonds with the rates going over 5%. And most likely they'll be paying well over 6% soon, maybe 7-8% in a year.

[7sdad]

What made you decide it was about time?

A death.


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