4 Ways Financial Advisors Get Paid

Before you hire a financial advisor, you first need to know the 4 ways they get paid. Knowing this beforehand will help you choose an advisor that is aligned with your goals.

How Financial Advisors Get Paid:

1: Commission only.

Some advisors earn commissions for selling financial products like stocks, insurance, real estate and loans.

2: Fee-only.

These advisors charge their clients in 3 different ways. Hourly fee or pay as you go… Flat fee, which is paying for a “package” of advice… and a Retainer fee which is normally calculated as a percentage of assets under management.

3: Commissions and fees.

Advisors in this category usually get paid commissions on financial products they sell AND charge a fee to the client.

4: Salary plus bonuses.

Typically these advisors work for discount brokers and draw a paycheck, while getting paid a bonus to bring in new clients.

The most popular among advisors is Commissions and fees.

As always before hiring an advisor, check their credentials thoroughly, ask for references and meet with them face to face.

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