How Planners Are Paid

Fee-only planners are compensated solely by client fees. A few charge by the hour ($100 to $250 an hour), but most charge around 1% of assets. Most require a client to have at least $100,000 in assets.

Commission-only planners usually offer free advice. They earn commissions when a client buys stocks, mutual funds and other products.

Fee-based planners combine fees with commissions. A financial plan may cost $250 to $2,500 or more, and clients may or may not be expected to buy products that pay the planner a commission.

---Liz Pulliam Weston