Small figures! How much to spend hiring a financial advisor?

Retirement and 401(k), and there comes the thought, how much do “I have to spend hiring a financial advisor”. Savings, expenditures and we look so close at them, when we get into a full time career. Dorky charm towards buying knick knacks mellows down, even without us growing aware of it.

“Depends on what we’re looking out for”

“Is it only retirement advice or investment? “

One session and one plan – little fee

A couple of sessions and long-term plans – High figured fee

More sessions and additional plans – Elite fee+ compensation

“When it’s fair enough to spend for financial planners”

Before getting into it, we do three things to save our wallets from going to ashes. Let’s jot down our income, expenses, savings, and mortgage.

Now, we figure out, what we are up to. Is it just about managing assets, insurance, ERE (Early Retirement Extreme)?

We draft the entire picture of our professional life.

Obviously, we won’t have to spend loads of money by stretching it for more than one session. We’re quite clear about the questions.

And we make it easier on the financial planner’s part.

One meeting > One session> 5 questions = Good and cheap financial advice.

“Hourly fee or an investment advisor working according to commission”

Hourly financial consultation ($300 approximately) works for the ones, who are aware of their engagement in the plans. I’m too good at book keeping and investments, and then I would go for it blindfolded.

Commission based financial consultation ($2000 approximately) would work the ones, who’ve no idea about mutual funds or managing assets.

There’s a myth doing rounds about investment planners working for a flat fee.

“They’re unbiased, and they are cheap”

It’s really funny because commission based investment planners help us with better advice and services. They get to the point right away within one session. Compensation matters with the value of our accounts growing annually.

It’s a matter of how far our engagement is going to be. Some people who have got no time for asset management would go with ongoing financial process (approximately, 2% to 25%).