Negotiating with Financial Advisors: Tips to Reduce Costs and Maximize Value


When you hire a financial advisor, you usually do so with the intent of managing money and saving money on your end. This begs the question: How else can you reduce costs and maximize their services? In this article, we’ll discuss how financial advisors charge for their services and how you can negotiate a better deal by working with them.

Exploring the true value beyond financial advice cost

Before everything else, you need to know how financial planners charge. They have different payment models that you can avail of to help you achieve your goal, whether you simply want to pay off all your credit card bills or run your transport business.

Commission. For financial advisors, this method is only possible when their clients buy their “product,” usually services like life insurance policies, wherein they earn a percentage commission from the sale.

Percentage-based. For this one, they charge clients based on how much money they’re handling for their clients, and in some cases, the financial advisor also receives a small percentage of the client’s assets.

Hourly fees. Based on the name itself, financial advisors charge by the hour, which is dependent on what kind of services you require from them. It’s important to remember that financial advisors charge at least $100 per hour as their flat rate, with more experienced advisors charging more.

Flat-fees. Similar to hourly fees, flat fees are payment options that financial advisors use to charge clients by giving them a list of services that they charge per service.

Along with these fees, you should also keep in mind that there are other factors that affect how much financial advisors charge, such as their experiences and qualifications. But if you do avail of their services, make sure to ask what other services are included in the fee so you can maximize working with them.

Strategies for negotiating and getting the best deal

Here are some ways you could reduce costs when hiring financial advisors:

  • Do your research and compare their fees. In this age where everything has pretty much gone digital, it’s no surprise to find information regarding financial advisors, so it’s best to do a background check and compare their prices.
  • Ask if they offer reduced fees for limited services. If you plan on working with them for a certain goal only, you could always ask if they offer discounts for limited services; in that way, you don’t have to fully pay for all of their services and can focus on the one thing that will help you achieve your goal.
  • Negotiate hourly rates or flat fees for certain financial necessities. If they’re not open for discounts on their items, you could also try negotiating their rates, especially if you know the scope or limit of your goal in mind.

There’s no denying that financial advisors are a great help in managing our wealth because of how they provide guidance and expertise over money matters and such. However, it’s also important to remember that their services tend to add up, so you should strategize on how to negotiate a deal with your financial advisor so it won’t break your bank account.