Many financial advisors charge based on the amount of money they manage on their behalf, and 1% of their total assets under management is a fairly standard rate. A financial advisor can provide you with valuable information about what you need to do with your money to reach your financial goals. But they don't offer their advice for free. The typical advisor charges clients for 1% of the assets they manage.
However, rates tend to decrease the more money you invest with them. You may be wondering if paying a financial advisor is worth it, but that answer is very personal to you. If you want help finding a financial advisor, try using the free SmartAsset search tool. Robo-advisors offer financial advice based on an algorithm.
Some offer support from human financial advisors. However, most of the time a computer program essentially manages your investments. Because there is less practical human participation, robo-advisors tend to charge lower fees than traditional financial advisors. For example, instead of paying 1% in annual fees, you could pay 0.25% or 0.50%.
However, it depends on the amount of assets you manage. Some robo-advisors may charge lower or higher fees, but a typical fee range is 0.25 to 0.50%. The average fee for a financial advisor is generally around 1% of the assets they manage. However, the more money you have invested, the lower the fee will be.
