How Much Is a Financial Advisor Going to Cost Me?
Just as you eyeball grocery prices before making a selection or get an estimate before hiring a contractor to do some home repairs, you need to ask financial counselors how they bill for their services. You may worry that they will burst into an "If you have to ask me, you can't afford me!" rage, but that hot-headed reaction would actually be a good thing, because it would let you know you're talking to the wrong advisor.
Smart financial advisors of all stripes are happy to explain their charges and justify the reasons behind their rates; it is up to you to decide if you want to pay the freight.
A price check also is important because fees and payment structures can vary tremendously from one advisor to the next.
We'd all love to get free advice, but you may be hiring a planner or broker because the free "counsel" you have gotten from friends and loved ones has been worth every penny you have paid for it, and now you want a better grade of assistance. That said, seek out a price point and pricing structure that you feel good about, because that will encourage you to use the advisor's services regularly and build the relationship.
Smart Investor TipSmart financial advisors of all stripes are happy to explain their charges and justify the reasons behind their rates; it is up to you to decide if you want to pay the freight.
By Chuck Jaffe