A. While many financial advisors are paid by the commissions - you buy the products they recommended, and the product provider pays the financial advisor the commission - a percentage of the value of the product you bought, many financial advisors charge a fee, with several variations:
a. A flat fee, for example, $5,000, to render the services they promised to deliver.
b. An hourly fee, for example, $100 per hour, to render the specified services.
c. An asset-based fee, for example, 1% of the asset they manage for you.
Regardless which pay structure, it's important for consumers to shop around, and ask the right question - how much will be my total cost (not just how much is your charge).