How Much Does a Financial Advisor Cost? (Complete 2025 Fee Guide)

One of the first questions people have about financial advisors is: what do they cost? The honest answer is: it depends — on the type of advisor, the services included, your asset level, and how the fee is structured. But the range is predictable, and understanding the models helps you both benchmark a fair price and ask the right questions.

Model 1: AUM (Assets Under Management) Fees

AUM fees are the most common compensation structure for investment-focused advisors. The advisor charges a percentage of the assets they manage on your behalf, billed quarterly.

Typical ranges by asset level: $250,000–$500,000 in assets: 1.0%–1.5% annually. $500,000–$1M: 0.75%–1.0%. $1M–$3M: 0.5%–0.75%. $3M+: 0.25%–0.5% (often negotiable).

On $500,000, a 1% AUM fee costs $5,000 per year. On $1M, a 1% fee costs $10,000 per year. These fees compound significantly over time — the 20-year opportunity cost of a 1% fee on a $1M portfolio growing at 7% is approximately $660,000 in foregone wealth.

Important: the AUM fee is not your total cost. Most advisor portfolios include mutual funds or ETFs that carry their own internal expense ratios (0.05%–1%+). Your all-in cost is the advisor's AUM fee plus the weighted average expense ratio of your underlying investments.

Model 2: Flat Annual Retainer

Flat fees charge a fixed dollar amount per year for comprehensive financial planning, regardless of asset size. This model has grown significantly in the last decade as younger clients with lower assets but high complexity (student loans, RSUs, equity compensation) sought planning-focused advisors.

Typical range: $2,000–$10,000 per year depending on complexity. Some firms offer "planning only" retainers (no investment management) at the lower end, while comprehensive wealth management retainers sit at the higher end.

The advantage: your fee does not increase as your assets grow (unlike AUM). The same quality of service at $500K and $5M.

Model 3: Hourly Fees

Hourly fees work well for one-time consultations or specific projects: a second opinion on your portfolio, a retirement readiness assessment, a stock option exercise strategy, or a divorce financial analysis.

Typical range: $200–$500 per hour. Total project costs usually fall between $1,000 and $5,000 for defined-scope engagements.

The advantage: you pay only for what you use. The drawback: there is no ongoing relationship, so the advisor does not proactively monitor your situation between engagements.

Model 4: Subscription / Monthly Retainer

A growing number of advisors — particularly those serving younger professionals and tech workers — charge a monthly subscription fee for ongoing access to financial planning services.

Typical range: $100–$500 per month ($1,200–$6,000 annually). Often includes unlimited messaging, scheduled reviews, and access to planning software.

This model makes advisory services accessible to clients who may not have enough investable assets to interest a traditional AUM advisor but who have genuine planning complexity (student loans, equity compensation, career transition).

Hidden Costs to Watch For

Fund expense ratios: The mutual funds and ETFs in your portfolio have their own annual fees, which are deducted from returns automatically and do not appear on your invoice. Always ask your advisor for the weighted average expense ratio of your portfolio.

Trading costs: Most advisors have moved to zero-commission platforms, but some may trade in funds with transaction fees.

Account fees: Some custodians charge annual account maintenance fees, wire transfer fees, or IRA closure fees.

The all-in cost is what matters. A 0.75% AUM fee with 0.50% in underlying fund expenses costs you 1.25% annually — more than an advisor charging 1.0% AUM with 0.05% index fund expenses (1.05% all-in).