“It’s time to negotiate. How To Get The Best Financial Advisor – For Much Less Money


MarketWatch has promoted these products and services because we believe readers will find them useful. We may earn a commission if you purchase products through our links, but our recommendations are independent of any compensation we may receive.

Some financial advisors charge by the hour or by package, others charge a percentage of the assets they manage for you. Hourly rates for financial advisers tend to range from around $ 100 to $ 400 an hour, while annual fees are often around 1% of assets under management. This means that these fees can run into the thousands of dollars in a single year. But often an advisor’s fees are negotiable. Here’s how to pay less for the advisor of your choice. (This tool can help you find a planner that meets your needs.)

Be clear on what you want

“It can be helpful to have an open and detailed discussion about your advisor’s fees and ask for ways to lower your costs,” says Tiffany Lam-Balfour, investment spokesperson for NerdWallet. Ask them to estimate how much their fees could be each year, and if the fees seem higher than expected, Lam-Balfour says it’s okay to ask the financial advisor if there are ways to reduce the fees. costs. “Ask them what they recommend as the best value for their services,” says Arielle Bittoni, chief wealth strategist at Refresh Investments. There’s no hard and fast rule of how an advisor can fold, but it doesn’t hurt to ask.

Share what competitors charge

If the advisor you want charges more than the others, it may be worth sharing the price list of a competing advisor. “A potential advisor may be willing to beat or match these fees to earn your business,” says Lam-Balfour.

Ask for the compensation method that works best for you

“Clients should have open discussions with potential financial advisors and ask them questions about their process and how they are paid. Many CFP practitioners can be hired on an hourly basis or also be remunerated based on assets under management, ”said Grace S. Yung, Managing Director and Wealth Advisor at Midtown Financial Group. Either of these ways may make more sense for you and save you money. (This tool can help you find a planner that meets your needs.)

Find out about the à la carte options or packages, depending on your needs

According to Yung, consumers can also save money by choosing only the services they need. Alternatively, you might be better off with a package: “Some advisors offer packages to be more profitable,” she says.

Increase the amount you invest with the advisor, if you can

Often advisers will offer different levels or levels of service depending on the assets under management, which usually results in a client preferred rate, based on the amount of assets an advisor manages for a household, ”Yung explains.

Go elsewhere

Even if an advisor has no wiggle room, they must convey their value proposition, and then it is up to the client to decide whether the price of the services is reasonable or not. “The good thing is that there are many types of consulting services with different fees, so hopefully each person can find the right solution for their level of service and cost,” says Lam- Balfour. (This tool can help you find a planner that meets your needs.)


Comments are closed.