How do I find a financial advisor? How much should financial planning services cost? How do I evaluate financial advisor candidates?
These and other similar questions come up a lot in my email inbox.
Jim Dahle recently provided a balanced take on the topic of finding/evaluating an advisor.
From the article:
“The rule of thumb is that high-quality financial advice costs a four-figure amount per year, ie, between $1,000 and $10,000. If you are paying more than $10,000 per year, you can almost surely get the same (or better) advice and service for less money. If you are paying less than $1,000 per year, you are unlikely to actually be receiving high-quality, personalized advice.”
I’ve never heard such a rule of thumb before, but I think it’s pretty good — not perfect, but helpful in most cases.
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