How much does a financial advisor cost?

Financial advisor fees typically fall into three structures: fee-only (AUM-based, hourly, or flat), commission-based, or a hybrid. AUM-based advisors commonly charge 0.5%–1.5% of assets per year; hourly rates average $200–$400; and flat annual retainers vary from a few hundred to several thousand dollars, depending on complexity. All fees vary — get a written fee disclosure before engaging.

The cost of a financial advisor depends on how they're paid — not just their rate. The SEC and FINRA require registered advisors to disclose their compensation in a document called the Form ADV Part 2 (investment advisors) or in a Regulation Best Interest disclosure (broker-dealers). Always request this document before hiring.

The three main fee structures

• AUM (assets under management): A percentage of the portfolio you hand over to manage — often 0.5%–1.5% annually (varies widely). On a $500,000 portfolio at 1%, that's $5,000/year. Costs rise as your assets grow.
• Hourly: Typically $200–$400 per hour for standalone financial planning sessions. Good for targeted questions (tax planning, retirement check-up) without ongoing management.
• Flat annual retainer: A fixed yearly fee — often $1,000–$7,500+, depending on plan complexity — for ongoing advice without AUM billing. Growing in popularity for younger accumulators.
• Commission-based: The advisor earns a commission when you buy products (life insurance, annuities, mutual funds). May create a conflict of interest — ask about fiduciary duty before engaging.
• Fee + commission hybrid: Some advisors charge a retainer or AUM fee and also earn product commissions. The Form ADV or Reg BI disclosure will list both.

Fiduciary vs. suitability standard

A fiduciary advisor is legally required to act in your best interest. Registered Investment Advisors (RIAs) registered with the SEC or a state regulator must meet this standard. Broker-dealers follow a Regulation Best Interest standard — they must make a recommendation in your best interest at the time, but are not fiduciaries on an ongoing basis. FINRA's BrokerCheck and SEC's IAPD let you verify credentials and check for disciplinary history.

ClearValue Lending is not a financial advisor

This page provides general financial education about how advisor fees work. ClearValue Lending is a business & personal financing platform — not a Registered Investment Advisor or financial planner. For personalized financial planning advice, consult a fiduciary RIA or CFP credentialed professional.

What regulators publish

• Registered Investment Advisors must provide clients with Form ADV Part 2, which discloses all fees, compensation, and conflicts of interest. — SEC — Investment Adviser Public Disclosure
• FINRA's Regulation Best Interest (Reg BI), effective June 2020, requires broker-dealers to act in the retail customer's best interest when making recommendations, and to provide a Relationship Summary (Form CRS). — FINRA — Reg Best Interest
• BrokerCheck allows investors to verify a broker or advisor's registration, credentials, and disciplinary history at no cost. — FINRA BrokerCheck

Key takeaways

• AUM-based advisors typically charge 0.5%–1.5% per year; hourly rates average $200–$400 — verify before engaging.
• Ask for Form ADV Part 2 (RIAs) or Form CRS (broker-dealers) to see exactly how your advisor is compensated.
• Fiduciary advisors (RIAs) must act in your best interest; broker-dealers follow the Regulation Best Interest standard.
• Use FINRA BrokerCheck and SEC IAPD to verify credentials and check disciplinary history.
• Fees vary widely — get written disclosure and compare multiple advisors before committing.

Related

• What is a brokerage account?
• What is a rollover IRA?
• What is the contribution limit for an IRA in 2026?
• What are typical brokerage account fees?
• What are 401(k) fees and how much do they cost you?

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