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Understanding the Cost of a Financial Advisor

Writer's picture: Joe BoughanJoe Boughan

Updated: Jan 23

Planning for your financial future is one of the most important decisions you’ll make, especially as you approach retirement or work to grow and preserve your wealth. However, one common question clients often ask is: What does it cost to work with a financial advisor?

The answer isn’t straightforward. Costs can vary significantly depending on your advisor’s fee structure, services, and expertise. In this article, we’ll break down the common fee models, explain factors that influence pricing, and share how Parkmount Financial Partners approaches financial planning and wealth management.


Common Financial Advisor Fee Structures

When working with a financial advisor, understanding their fee structure is key to making an informed decision. Here are the three main models:


1. Commission-Based Fees

In this traditional model, advisors earn a commission from selling financial products such as mutual funds, insurance policies, or annuities. While this structure can appear transparent, it has potential drawbacks:

  • Higher upfront costs may apply.

  • Conflicts of interest could arise if the advisor recommends products based on commission incentives rather than your best interests.


2. Fee-Only Advisors

Fee-only advisors charge clients directly, typically through various types of fee structures. This model reduces conflicts of interest, as compensation is not tied to product sales. Clients benefit from:

  • Independent advice tailored to their goals.

  • Greater transparency in pricing.


3. Fee-Based Advisors

This hybrid model combines the features of commission-based and fee-only structures. Advisors may charge a direct fee while also earning commissions on product sales. While this can provide flexibility, clients should ensure they fully understand how fees are calculated to evaluate transparency. This model has a potential to also be a lot higher overall costs as advisors could be compensated double in some instances, so it is important to be aware of when these different types fees may apply.


Factors That Influence Financial Advisor Costs

Several factors can affect what you’ll pay for financial advisory services:

  • Advisor Experience and Expertise: Seasoned advisors often charge higher fees due to their expertise and ability to handle complex financial situations.

  • Services Offered: Comprehensive services like financial planning, tax planning, estate planning, and retirement income strategies typically cost more than basic investment management.

  • Asset Size: Clients with larger, more complex portfolios may face higher fees, as their financial plans require more detailed attention and management.


Parkmount Financial Partners’ Approach

At Parkmount Financial Partners, we specialize in providing tailored financial planning and wealth management services to mid- and late-career professionals across Massachusetts. Our approach is designed to help you achieve financial security and confidence as you navigate life’s most important milestones.


Here’s how we work with our clients:


1. Free Strategy Call

We start with a complimentary strategy call to understand your unique financial situation. During this session, we’ll answer your questions, provide initial feedback, and determine if our services are the right fit for you.


2. Fixed Planning Fee

If we mutually decide to move forward, we typically begin with a comprehensive financial planning process. Over 4–6 meetings, we’ll:

  • Define your goals.

  • Organize your finances.

  • Develop a clear strategy and actionable steps.

The cost of this plan is determined during the strategy call, based on the level of complexity involved. A typical fixed fee can range from $5,000 on the low end for a comprehensive plan, to $11,000 on the higher end for more nuanced circumstance and planning.


3. Ongoing Wealth Management

Clients who complete the planning process may be invited to join our ongoing wealth management program, with a minimum investable asset requirement of $500,000. This program includes:

  • Continuous monitoring and support for your financial plan.

  • Execution of investment strategies through our partnership with Charles Schwab.

  • Regular check-ins to ensure you stay on track toward your goals.

Fees for ongoing wealth management are based on a percentage of your assets under management, typically ranging from 0.5% to 1.5%, depending on the complexity of your situation.


The Importance of Transparency and Trust

At Parkmount Financial Partners, we believe transparency is essential in building trust with our clients. We clearly outline our fees and disclose any potential conflicts of interest. For example, as a fee-only advisory firm, we are compensated based on the value we bring to your portfolio and overall financial plan—not through third-party commissions.

Our goal is simple: to help you live your best life with your money. We focus on empowering you to make informed decisions, spend confidently in retirement, and achieve your most meaningful aspirations.


Making the Right Choice

Choosing the right financial advisor is about more than just cost—it’s about finding a partner who aligns with your values and goals. If you’re ready to take the next step in your financial journey, schedule a free strategy call with us today. Together, we’ll create a plan to help you feel secure, confident, and prepared for the future.


Financial Advisor Fees Decoded Video

 “Parkmount Financial Partners LLC” (herein “Parkmount Financial”) is a registered investment advisor offering advisory services in the State[s] of Massachusetts and in other jurisdictions where exempt. Registration does not imply a certain level of skill or training. The information on this site is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This information should not be relied upon as the sole factor in an investment making decision. Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendations made will be profitable or equal any performance noted on this site. The information on this site is provided “AS IS” and without warranties of any kind either express or implied. To the fullest extent permissible pursuant to applicable laws, Parkmount Financial disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement, and suitability for a particular purpose. Parkmount Financial does not warrant that the information on this site will be free from error. Your use of the information is at your sole risk. Under no circumstances shall Parkmount Financial be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the information provided on this site, even if Parkmount Financial or a Parkmount Financial authorized representative has been advised of the possibility of such damages. Information contained on this site should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.

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Disclosures Can Be Found Here: Parkmount Financial Investment Advisory Brochure 

“Parkmount Financial Partners LLC”  (herein “Parkmount Financial”) is a registered investment advisor offering advisory services in the State[s] of Massachusetts and in other jurisdictions where exempt. Registration does not imply a certain level of skill or training.

The information on this site is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This information should not be relied upon as the sole factor in an investment making decision.

Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendations made will be profitable or equal any performance noted on this site. 

The information on this site is provided “AS IS” and without warranties of any kind either express or implied. To the fullest extent permissible pursuant to applicable laws, Parkmount Financial disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement, and suitability for a particular purpose.

Parkmount Financial does not warrant that the information on this site will be free from error. Your use of the information is at your sole risk. Under no circumstances shall Parkmount Financial be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the information provided on this site, even if Parkmount Financial or a Parkmount Financial authorized representative has been advised of the possibility of such damages. Information contained on this site should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.

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