Share this Page URL

Chapter 22. Getting Help > How Much Will It Cost? - Pg. 228

Getting Help 228 · Fee and commission planner--Often referred to as a fee-based planner, these planners are compensated from both sales and fees. This has become the most popular form of financial planning compensation. You pay an hourly fee to meet with the planner and receive her advice. If you choose to purchase financial products offered by these planners, they will earn a com- mission on the sale of these products. As noted, be careful in deciding to purchase such prod- ucts. · Money manager--Some planners manage your investments for you, charging a percentage of the assets under management for their fee. The fee ranges from 0.05 to 1.5 percent. Again, exercise caution when choosing a money manager, especially if you are giving someone dis- cretionary power over your money. How Much Will It Cost? When hiring a fee-only planner who charges an hourly fee, you can expect to pay anywhere from $75 to $250 an hour. Paying $250 an hour does not necessarily ensure you receive better advice. Different areas of the country have different pay scales. A complete financial plan can be had for as little as $275. But it will be a "canned" plan. You will fill out a questionnaire, including something about your risk tolerance, and a computer somewhere will spit out a plan for you. Many of the large brokerage firms and mutual fund companies offer these types of plans. A customized financial plan done by a financial planner could cost from $1,000 to $5,000 depending on the complexity of your finances. Some planners will offset the price of the plan if you purchase your mutual funds, annuities, or insurance through them. Planners who charge an annual retainer may charge it on a percentage of assets, including your