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.
A person who sells financial advice and/or products. They include financial advisers, insurance agents, planners, sharebrokers, mortgage brokers and bank managers or agents. They may be salaried, paid a commission or have an hourly rate.
A way to use your money to make it grow.
The money paid to a broker, financial adviser or planner, who sell products on behalf of a company. Commission can be based on the number and/or the value of the investments they sell.
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