How much should you pay for financial advice?

 How much are you paying for financial advice and investment management? How much should you pay?

Mike Piper, author of the oblivious Investor blog https://obliviousinvestor.com/ recently posted:

Professional Financial Advice: How Much Should You Pay?

Why pay 1% of assets under management (AUM) if you haven't changed anything in your portfolio for the last 10 years? (I've seen clients like that who are unaware that their "advisor" has been siphoning off 1% of their portfolio each year while doing virtually NOTHING). Even if you are getting a yearly "check up" with your advisor, is it really worth paying 1% of your portfolio? One-percent might not seem like much when the financial markets are returning 20-25%/year like the past few years but what about when markets are losing money? That 1% fee compounds the losses. Do you really want active management of your portfolio

 

Mike Piper wrote a through discussion of how financial advisors are paid and what your options are for hiring paid advice, as well as DIY options. The average hourly rate for financial advice is $250. If your portfolio total was $25,000, a 1% fee would equal $250. 

 

Piper's Oblivious Investor blog is loaded with consumer-oriented financial and investment advice. You can sign up to receive a weekly email which is a great way to gain information and motivation to help improve your financial situation.