Financial Advisor Fees: What You Need to Know

You’ve done it. You’ve saved up enough money to finally meet with AG Morgan Financial Advisors. But before you can grow your wealth, you need to know how much it’s going to cost you. Not all financial advisors charge the same fees, and some may not charge any fees at all. In this blog post, we’ll break down the different types of fees charged by financial advisors so that you can make the best decision for your money.
Different Types of Financial Advisor Fees
1. Commission-Based Fees:
The first type of fee is the commission-based fee. This is when a financial advisor charges a commission on the products they sell to you. For example, if you’re buying stocks, the financial advisor may charge a commission of 2-3% on each trade. Commission-based fees can be charged on investment products like stocks, mutual funds, and ETFs. They can also be charged on insurance products like annuities and life insurance.
2. Asset-Based Fees
The second type of fee is the asset-based fee. This is when a financial advisor charges a percentage of the assets under their management. The asset-based fee is typically 1% per year. So, if you have $100,000 invested with a financial advisor who charges an asset-based fee of 1%, you would pay $1,000 in fees each year.
3. Hourly Fees:
The third type of fee is the hourly fee. This is exactly what it sounds like—you pay an hourly rate for the time spent with the financial advisor. Hourly fees are typically charged by lawyers and accountants, but some financial advisors also charge this type of fee.
4. Project Fees:
The fourth type of fee is the project fee. A project fee is generally charged for one-time services like creating a financial plan or helping you set up an investment account. Project fees can be charged by financial advisors or other professionals like lawyers and accountants.
Conclusion:
Before meeting with a AG Morgan Financial Advisors , it’s important to understand how they charge fees so that you can make sure their interests are aligned with yours. Some common types of fees charged by financial advisors include commission-based fees, asset-based fees, hourly fees, and project fees. By understanding how these fees work, you’ll be better prepared to grow your wealth in a way that benefits both you and your financial advisor.