The financial services industry has changed a lot over the years. The traditional model of investment management is falling short of meeting clients’ needs. There has been growing distrust of the industry thanks to the 2007-2008 financial crisis, confusion over the many tax credits available following the COVID-19 pandemic, complexity of rules and regulations and too much ambiguity about service costs. In addition, with the growing evolution of technology making it faster and easier to get basic advice online, why would anyone work with a financial advisor today? The short answer is customization, the depth of knowledge and the value of services provided far exceed other available do-it-yourself options.
Every financial advisor is different, and you’ll find some do or do not charge hourly fees for financial advice. The practice of modern financial planning in 2023 should charge an annualized percentage based on your assets managed on your behalf.* As your assets grow, the fee associated will most likely reduce at specified thresholds. A smart financial advisor should understand you work hard for your money, and they should help make what you earn work harder for you.