Consulting fee

Pays for:
The cost of advice from an adviser - whether it's working out whether you need to save, what kind of investment strategy to adopt or which products might be appropriate.

Also known as:
Advisory fee.

Cost:
Consulting fees may be a set fee or an hourly rate. Rates range from $50 to $100 an hour, and can be as high as $350 an hour.

Tips:

• Find out the hourly rate - you may be able to agree a maximum amount for the job you want done.
• Ask your adviser if they are paid commission for products you sign up for. It's better if they're not - if you're paying for their advice, you want to be sure it's impartial.
• Ask your adviser to put in writing details of any payment they may receive other than the consultancy fees you pay.
• If your adviser does get some income from a product you invest in, you may be able to negotiate a lower fee.
• Sometimes an adviser waives a consulting fee for the first consultation. Find out if your adviser offers this.