What will advice actually cost?
A practical way to compare advisor fees, ask for a dollar estimate, and understand what is—and isn’t—included.
Jump to the checklist
Original AI-assisted editorial illustration · Fortune 100 Brokers
Start with the work you need
Before comparing prices, write down the help you are looking for: a one-time plan, ongoing investment management, retirement conversations, or coordination with other professionals. Ask each firm to describe its deliverables. A proposal for ongoing portfolio management and a proposal for a single planning engagement are different services; the headline price alone will not explain the difference.
Ask for the complete cost picture
The SEC explains that investment costs can include transaction charges and ongoing fees. Ask the advisor to separate their charge from costs within investments and any account or platform fees. Ask which charges are paid directly, deducted from an account, or reflected within an investment. Request a written explanation of compensation from third parties, too.
Turn percentages into a dollar example
For arithmetic illustration only, a 1% annual advisory fee on an unchanged $250,000 balance is $2,500 a year, before other costs. That is not a suggested fee, market average, or quote. Ask the firm to calculate its own example for the same hypothetical balance, services, and time period. If pricing has tiers, minimums, or separate planning charges, have the firm show how those affect the calculation.
Find out what changes the bill
Ask how balances are measured, when charges are collected, and what happens if you add or withdraw money. Would an inactive account still incur a fee? Are there minimum annual charges, extra meeting charges, or termination costs? Have the firm label any estimates that depend on trading activity or the investments selected.
Make the comparison useful
Put each proposal on one page with three columns: service included, estimated annual dollars, and unresolved questions. Ask for missing answers before signing. A lower price does not establish suitability; a higher price does not establish better advice. Decide which services you need, whether the responsibilities are clear, and whether you understand the arrangement.
Your next-step checklist.
Check items as you go. Progress saves in this browser; no account needed.
Sources & further reading
Official resources to explore alongside this guide.
For general education. These guides do not provide individualized investment, tax, or legal advice. Verify professional information independently and discuss your circumstances with qualified professionals.
Back to The Journal
