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Here's How Much It Costs to Use a Financial Advisor

The article from MSN Money discusses the costs associated with hiring a financial advisor. It outlines that financial advisors typically charge in one of three ways: a percentage of assets under management (AUM), hourly rates, or flat fees. The percentage of AUM can range from 0.5% to 2% annually, with the average being around 1%. For example, managing a $100,000 portfolio at a 1% fee would cost $1,000 per year. Hourly rates might be anywhere from $100 to $400, depending on the advisor's experience and location. Flat fees can vary widely, from a few hundred dollars for a one-time financial plan to several thousand for comprehensive, ongoing services. Additionally, the article mentions other potential costs like commissions on products sold, performance-based fees, or even subscription models. It also emphasizes the importance of understanding all fees involved, as they can significantly impact investment returns over time, and suggests considering robo-advisors as a potentially cheaper alternative for basic investment management.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/economy/here-s-how-much-it-costs-to-use-a-financial-advisor/ar-BB1oaBtf ]