- Fees charged by financial advisors vary based on their level of experience, services offered, and other factors.
- Financial advisors may charge a percentage of assets under management, an hourly rate, or a fixed fee for specific services.
- Investors should be wary of advisors who charge excessive fees or who do not fully disclose their fees and compensation structure.
- Investors should also consider the value provided by the advisor in relation to the fees charged, as a higher fee does not always equate to better service or performance.
- It is important to fully understand the fees and compensation structure of a financial advisor before engaging their services, and to negotiate fees when possible.
Financial advisors can be a great help when it comes to managing your money and figuring out your financial life, but they don’t come cheap. So how do you know how much to pay in fees to a financial advisor in Denver (and what’s appropriate or ridiculous)? In this article, we’ll break down the different types of fees that financial advisors typically charge, as well as give you some guidelines on how much you should expect to pay.
What to look for in a financial advisor
When you’re looking for a financial advisor, you want to find someone who is trustworthy and has your best interests at heart. At Progress Wealth Management, we believe you should find someone who is a fiduciary and non-commissioned because these kinds of advisors have the fewest conflicts of interest (they’re paid to give you good advice, not sell you stuff). You also want to find someone who is experienced and knowledgeable about the financial world.
Because some advisors drastically overcharge, fees are important, however, they shouldn’t be the only thing you consider when choosing a financial advisor. You want to find someone who is going to give you good advice and help you make the best decisions for your finances to make reaching your goals simpler, easier, and more tax-efficient.
The benefits of working with a fee-only financial advisor in Denver, Colorado over commissioned financial advisors
Fee-only financial advisors in Denver provide a number of benefits that can be extremely helpful, especially for those who are working to save for retirement or manage their financial portfolio. One of the major benefits of working with a fee-only financial advisor in Denver is that they are legally required to always put their client’s best interests first.
Commissioned advisors may argue they do, too, however, at one point they take off their advisor hat and put on their insurance broker or stock broker hat and no longer are fiduciaries (that’s a problem you should care about). This is called being “dually registered” and is a type of advisor we think you should avoid.
Another benefit of working with a fee-only financial advisor in Denver is that you typically will be charged less than you would if you worked with a commissioned advisor, all considered (expense ratios, commissions, etc.). This can save you a significant amount of money over time, which can be reinvested into your retirement savings or used to grow your portfolio.
Finally, most fee-only financial advisors in Denver are holistic financial planners, not just money managers or insurance salesman. This means that your fee-only financial advisor will be able to help you improve every part of your financial life. They oftentimes will review your tax return, estate documents, employee benefits, insurance, budget, earning ability, and much more in hopes of making you happier, healthier, and (most importantly) wealthier. This means that they can provide you with more comprehensive advice and guidance when it comes to managing your finances.
How much should you pay in fees to a financial advisor in Denver?
If you’re looking for a financial advisor in Denver, you might be wondering how much you should pay in fees. The answer to this question depends on a variety of factors, including the type of financial advice you’re seeking and the experience of the financial advisor.
Generally speaking, you can expect to pay between 1% and 2% of your total investment portfolio as a fee to your financial advisor. However, if you have a large portfolio or if you’re seeking specialized advice, you may pay more. For example, if you’re working with a certified public accountant (CPA) to plan your taxes, you may pay an hourly rate for their services.
When it comes to fees, it’s important to choose a financial advisor that you’re comfortable working with and who you feel is providing value for the fees they’re charging. If you’re not happy with the level of service or the advice you’re receiving, don’t be afraid to shop around for another financial advisor.
The Top Five Fee-only Financial Advisors in Denver
There are a lot of different financial advisors in Denver, and each one charges different fees. Some advisors charge by the hour, while others charge a percentage of your assets.
In our opinion, no one is an expert at everything. We believe that the best advisors recognize this as well and help their clients verify they’re doing everything perfectly meaning they leave no stone unturned. Every year, they review their client’s tax returns, estate plans, insurance, earning ability, savings, budget, investments, and financial plans. They see financial planning as a vital source of value to change their client’s lives forever and not just as a sales tool.
So how do you know how much to pay in fees to a financial advisor in Denver?
Here are our favorite 5 fee-only financial advisors in Denver, and how much they charge in fees:
1. Progress Wealth Management – 1% with a max of $15,000 per year
2. Gold Metal Waters – $7,000 minimum and increases each year
3. My Wealth Planners – 1%
4. Ten Talents Financial Planning – 1% for the first million and negotiable for anything above.
5. TCI Wealth Advisors -1% for the first 2 million.
As you can see, there is a wide range of fees that financial advisors in Denver charge. It all depends on who you choose to work with. Make sure to do your research and find an advisor that charges fees that you’re comfortable with.
Summary and conclusion
How much should you pay in fees to a financial advisor in Denver?
This is a difficult question to answer, as there are many factors to consider. You need to think about what type of advice you’re looking for, how much experience the advisor has, and what their credentials are. You also need to consider how much money you have to invest, and what your goals are.
Generally speaking, you can expect to pay 1-2% of your assets under management (AUM) in fees to a financial advisor, however, there are some advisors who charge by the hour, and their fees can vary widely.
Before hiring an advisor, be sure to ask about their fee structure and what services they include for that fee. Get everything in writing so that you know exactly what you’re paying for. And finally, don’t be afraid to negotiate! If you feel like the fees are too high, try asking for a discount.