What is the typical rate that a fee-only financial planner would charge?
A.D., via e-mail A: Financial planning fees come in many shapes and sizes – by the hour, by the project, on a retainer basis, or based on assets under management, says Ellen Turf, executive director of the National Association of Personal Financial Advisors (NAPFA). The amount also varies by geography. Just like lawyers and accountants, a fee-only planner in San Francisco is likely to charge more than one in Scranton, Pa. Having said that, she would guess a range of $180 to $350 per hour, though the amount also will vary by the complexity of your situation. If the planner charges based upon assets under management, it may start out at 1 percent but fall if you have a considerable amount of money. Ms. Turf recommends that you interview planners – fee or commissioned – to see whether their expertise and interests extend to what you want to accomplish, and discuss fees they’ll collect. “This is part of your comfort level,” she says of the necessity of building a level of trust with people
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