A financial advisor can help design your investment strategy, untangle taxes and turn vague goals into a concrete plan.

But every meeting, model and trade has a price.

Even “small” annual percentages can translate into thousands of dollars over time, especially on six-figure portfolios. Understanding how advisors charge is the first step to deciding if their help is worth the cost for you.

Typical Price Ranges

For a one-time, comprehensive financial plan, expect roughly $1,000 to $3,000.

That usually includes a full review of income, debts, savings, insurance, and projections for retirement, home purchases or education funding.

If you prefer pay-as-you-go help, many planners charge around $120 to $300 per hour.

Straightforward cases might need only a few hours; complex business or tax situations can require more time—and a higher bill. Ongoing portfolio management is often priced as a percentage of “assets under management” (AUM).

A common range is about 0.65% to 1% per year, often with minimums such as $250,000 in investable assets.

Advisor Fee Models

Commission-based advisors are paid when you buy certain products, such as mutual funds, annuities or insurance policies. This can reduce visible upfront fees but may tempt the advisor toward higher-commission options instead of the best fit for you.

Fee-only advisors are paid directly by clients. They may bill hourly, charge flat planning fees, or take a percentage of AUM—often around 1% or less. Because they do not earn commissions from products, their incentives are more closely tied to your outcomes. Some advisors use a hybrid, or “fee-based,” model. They charge an AUM fee and may also receive product commissions. This structure isn’t automatically bad, but it demands clear, written disclosure of all sources of compensation.

What Drives the Price

Experience, credentials and specialization influence cost. An advisor with decades of practice or expertise in areas like equity compensation, complex estates or business exits will usually charge more, reflecting the depth of guidance provided.

Your own situation matters just as much. Multiple income streams, rental property, complex tax issues or large portfolios require more analysis and ongoing monitoring, which increases the fee.bLocation can also play a role.

Advisors in high-cost cities or major financial centers often have higher fees than those in smaller markets, reflecting higher operating expenses and local demand.

Product and Transaction Costs

Advisory fees are only part of the picture.

The investments used—mutual funds, ETFs, or other vehicles—often carry their own internal expenses, called expense ratios. These can range roughly from 0.5% to 1.5% for actively managed funds.

Trading individual securities may also involve brokerage commissions or transaction charges.

When you combine advisory fees and product costs, a total fee difference of even 0.5% annually can significantly affect your long-term balance.

Extra Service Charges

Many advisors offer add-on services beyond core investment management.

These may include detailed tax strategies, estate planning coordination, business consulting, or customized retirement income modeling. Such specialties often come with separate or higher fees.

Before signing an agreement, ask exactly which services are included in the base fee, which are à la carte and how those extras are billed.

Big-Firm Example

Large firms often use tiered schedules.

For instance, managed accounts at a major firm such as Fidelity typically charge a percentage of AUM, often in the ballpark of 0.35% to 1.5% annually, depending on the strategy and account size.

That fee usually covers portfolio design, monitoring and access to advisors.

Additional services—like in-depth tax planning or estate consulting—may carry separate charges.

Always request a written breakdown so you understand the full cost, not just the headline percentage.

Taxes and Fees

Under current U.S. rules, most individual investors can no longer deduct financial advisor fees on their federal returns.

These costs used to qualify as miscellaneous itemized deductions but were largely eliminated in recent tax law changes. There can be narrow exceptions, so a tax professional should review complex situations.

For most households, though, advisor fees are paid with after-tax dollars, making it even more important to weigh value against cost.

Finding Affordable, Qualified Help

Start by comparing several advisors instead of hiring the first one you meet.

Review credentials, years of experience, specialties and exactly how they are compensated. Many firms now publish their fee ranges on their websites.

Ask for plain-language explanations:

“If I invest $200,000 with you, what total dollar amount would I pay in a typical year?”

Also clarify which services are proactive (planning, monitoring) and which are reactive (only when you call).

Personal referrals from friends, colleagues or your tax professional can help identify advisors with strong communication and reliability, not just performance claims.

Can You Negotiate?

In some cases, yes. Advisors may be open to adjusting their fee if your situation is straightforward, or if you’re comfortable with a narrower scope of services. You might agree on a flat project fee for planning, then handle your own investing afterward. Others may offer lower percentages for larger accounts or a retainer-style model where you pay a set amount for ongoing access. The key is to ask. Transparent advisors welcome cost discussions and help you tailor the arrangement to your needs.

Are Advisors Worth It?

For many people, the biggest value is not picking the perfect fund; it’s avoiding big mistakes—panic selling, chronic under-saving, poor diversification or ignoring taxes.

Avoiding even one major error can outweigh several years of fees.

Advisors also reclaim your time, turning complex research and monitoring into a structured process.

For investors with significant assets, complicated taxes or major life transitions, that guidance can be well worth the cost.

Bottom Line

A financial advisor’s price tag can feel steep, but with the right fit, it’s an investment in clarity, discipline and smarter long-term decisions. The goal isn’t finding the cheapest option, but the one that offers clear value for the fee.