Like any professional service, financial planning advice is not free. If you are need of financial advice, for whatever reason, it is good to have an understanding of the various ways in which financial advisors charge for their services.

Financial planners are professionals in their field and experts in offering you financial advice, whatever your goal might be. Whether you aim to pay of a debt as efficiently as possible, or accumulate wealth over a period of time, you will need the help of a financial advisor to create an optimal financial plan. The cost for this professional advice can vary depending on how complex your situation is. It is important that you determine what these fees and charges will be before entering into an agreement with a financial planner.

You may be charged a once-off flat fee to prepare a financial plan and further fees to implement the plan that are charged at a fixed hourly rate. If your financial advisor also acts as a broker, there may be brokerage fees, additional legal and accounting fees or other ongoing management fees. If you are seeking to increase your wealth through a wealth management plan, the fee payable to your financial advisor may be based upon a percentage of the funds under management.

Be wary of financial planners who claim to offer services ‘free of charge’. There are sure to be hidden costs that you will bear along the way. In such cases, always read the ‘fine print’ of any documents or agreements the financial advisor requires you to sign.