Search thousands of topics on CostHelper.com

BROWSE ALL TOPICS >> appliances babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business weddings
CostHelper > Personal Finance  > Taxes & Financial Planning > Financial Planner

Financial Planner Cost


How Much Does a Financial Planner Cost?

 
low costHourly Rates: $100-$400average costFlat Fees: $400-$500high costComprehensive Financial Review: $1,600-$4,000
post E-mail post Post   Comments (1)

A financial planner helps clients create formal plans to manage their money over the long term to reach their goals (such as retirement or sending children to college), including the flexibility to handle financial emergencies. In a related service, a financial adviser (also called an investment adviser) will assess a client's current financial situation, compare it to the financial plan, and recommend appropriate next steps to follow the plan. Most financial planners are also financial advisors, but not all financial advisors are financial planners. The Security and Exchange Commission provides overviews of financial planners[1] and investment advisers[2] .

Typical costs:

  • Certified financial planners generally charge in one of three ways: a fixed or hourly fee for a specific service (called fee-only); no fee but with a commission earned on the products bought; or a combination of a fee for the planning process and commissions on the products bought. The Financial Planning Association provides an overview of how planners charge for their services[3] , and Invest-FAQ.com describes the biases and potential conflicts[4] in each of the ways financial planners are compensated.
  • Hourly rates can cost $100-$400, depending on location and the planner's qualifications, but average $175 an hour, according to Financial-Advisors.in. New Means Financial Planning, a fee-only service in New Hampshire, estimates that a financial consultation for clients in their 20s and early 30s can cost $540-$900, while a pre-retirement assessment could be $1,080-$1,800, and a comprehensive financial review might run $1,620-$3,960. Minerva Planning Group in Atlanta, Georgia, describes a sample retirement plan[5] that required seven hours of work at $190 an hour, for a total cost of $1,330. Flat fees (rather than hourly rates) are generally based on an average number of hours of work, and start around $400-$500 for basic financial plans and increase depending on the scope and complexity.
  • Commissions range from 1 percent or less on money market accounts and treasury bills, up to 5.5 percent on mutual funds (which translates to $500-$2,375 on a $50,000 investment). Most financial planners will provide a half-hour or hour-long initial interview for free.
Related articles: Tax Returns, Stock Broker, Brakes, IRA

What should be included:
  • Financial planner services can range from a one-time analysis to ongoing oversight of any investments and other accounts. A financial planner may help with decisions like how large of a monthly mortgage payment a first-time homebuyer can handle without harming other financial areas, when to refinance a house, or deciding when and how to retire. The US Securities and Exchange Commission[6] provides a brief overview.
Shopping for a financial planner:
  • Legally, anyone can call themselves a financial planner. However, several industry groups have credentialing programs; it's possible to search[7] the Financial Industry Regulatory Authority for an explanation of specific professional designations, such as Certified Financial Planner (CFP).
  • Interview several planners to learn more about their skills, training, personality and services. If possible, meet face-to-face. Ask specific questions about their expertise, services included and what the plan will look like when the process is complete. The Financial Planning Association lists questions to ask[8] . The National Association of Personal Financial Advisors, whose members are all fee-only planners, provides tips and tools[9] for choosing a financial planner. And MSN.com lists 8 Things a Financial Planner Won't Tell You[10] .
  • Search for local financial planners with the Certified Financial Planner Board of Standards[11] , Financial Planning Association[12] or the National Association of Personal Financial Advisors[13] .
  • The financial planner selected will provide a written agreement clearly outlining all the services that will be provided. Keep this document on file for future reference.
post E-mail post Post   Comments (1)
CostHelper News


Forgotten Expenses In a Home Addition Budget
Items like construction costs, permit fees or debris removal aren't the only expenses to consider when calculating the total costs of a home remodeling project. || Posted August 5 2013


Girl Scout Cookies Marijuana Selling for $5,000 a Pound
Would you like to smoke some Peyton Manning? Or, would you prefer to spark up some Girl Scout Cookies?Marijuana growers and venders are getting creative with the highly recognizable names they give different strains of weed, without the permission o. || Posted October 18 2013

‣ All CostHelper Blog Posts


What People Are Paying - Recent Comments
Financial Planning Advice
Amount: $5,000.00 total
Posted by: Prasad in Kansas City, MO.Posted: October 3rd, 2014 09:10AM
Commission or Fee Only: Fee OnlyType of Service: Financial Planning
Ran 5 different scenarios to cover our current assets and liabilities across three countries
Was this post helpful to you?   yes     no Report prohibited or spam


 

Comment On Your Experience With a Financial Planner
 
Subject:  *
Amount Spent:  * total
Commission or Fee Only: Type of Service: 
Comments: 
Purchased:  Year: 
City:  * State:  *
 
Information about you:
Email:  * Email addresses are not displayed.
Name:  This is the name we'll display with your post.
me on this computer
*=required field.
 



External Resources:
  1.  www.sec.gov/answers/finplan.htm
  2.  www.sec.gov/investor/pubs/invadvisers.htm
  3.  www.fpanet.org/FindaPlanner/HowPlannersCharge/
  4.  invest-faq.com/articles/fplan-compensation.html
  5.  www.minervaplanninggroup.com/sample-financial-plans/
  6.  www.sec.gov/answers/finplan.htm
  7.  apps.finra.org/DataDirectory/1/prodesignations.aspx
  8.  www.fpanet.org/FindaPlanner/ChoosingaPlanner/QuestionstoAsk/
  9.  www.napfa.org/tips_tools/index.asp
  10.  money.msn.com/retirement/
  11.  www.cfp.net/utility/find-a-cfp-professional
  12.  www.fpanet.org/PlannerSearch/PlannerSearch.aspx
  13.  findanadvisor.napfa.org/Home.aspx
More Personal Finance Topics
Check Out All Costs for Personal Finance How Much Does Closing a Home Cost? How Much Does a Traffic Ticket Attorney Cost? How Much Do Funeral Flowers Cost?

Search Thousands of Topics on CostHelper.com




Today's Featured Cost Articles

About CostHelper
CostHelper is based in Silicon Valley and provides consumers with unbiased price information about thousands of goods and services. Our writers are experienced journalists who adhere to our strict editorial ethics policy.

CostHelper Community
Stereotactic Biopsy
Paid: 4500.00
I was told the doctor is paid 100% anesthesia 20% and the facility $75.00. This is what my insurance covers. The Facility use and equipment, my cost,$4500 for about 30 mins... [more]
-N Page
Biopsy Cost
Cost urine test
Paid: 5936.38
Dr. Office wanted urine for drug tests never saying anything about cost. Is this a mistake? Seems like this can't be right insurance already paid some of it and I am left with balance of $1,460.00... [more]
-Celia
Drug or Alcohol Testing Cost
EEOC waste of taxpayer monies
Paid: 0.00
I filed within their time frame. I had discriminatory documents submitted to me by my employer. I was laid off and retaliated on paper. The EEOC informed me via certified mail that they had no funds to investigate... [more]
-Disappointed with our Government Leaders
Employment Discrimination Lawsuit Cost
euthanasia
Paid: 266.00
I went in a few weeks before and had all the paper work done and paid for the procedure.That helped me not have to talk about it and they were very kind but it is still the hardest thing you will ever do also the kindest... [more]
-monique piccus
Pet Euthanasia Cost
Four wisdom teeth removed
Paid: 846.00
When I needed to have my wisdom teeth removed, I didn't have dental insurance. The total cost was over $800 and that included all four wisdom teeth(one had to be split in half) and general anesthetic... [more]
-Amy_157
Tooth Extraction Cost
Rabies Shots
Paid: 1662.82
My daughter was scratched by a stray cat. She's away at college. She went to get rabies shots and the original bill was $14,411.50. Our insurance paid all but $1662. This is outrageous... [more]
-Vivian
Rabies Vaccine Cost