Why Financial-Advisor Fees Can Be Higher Than You Think
Everyone likes a bargain, but most people don't really know if the financial advice they seek is worth the price they pay. More than half of those who use financial advisors either thought the advice they received was free, or weren't able to say how much they paid, according to a survey conducted by Cerulli Associates and Phoenix Marketing International.
In reality, the amount that people pay for financial advice is often far higher than they imagine, and it takes some work to dig through all the costs that you might be paying to your advisor without even realizing it. Below, we'll run through the common fees that financial advisors charge, and how you can learn more about what your actual costs are.
You shouldn't count on getting a bill that will list all of the money that your financial advisor collects in fees and other charges. Most of the time, you can expect that your advisor will get compensated either by collecting commissions on the investment transactions done in your account, or through an arrangement based on a percentage of the amount of assets you have under management.
Source: Fool.com
