Question

Do most financial advisors charge a flat amount? Do you prefer a flat amount or a...

Do most financial advisors charge a flat amount? Do you prefer a flat amount or a percentage of the earnings?

Homework Answers

Answer #1

No, generally financial advisors charge a percentage of the assets they manage .It might range from 0.5% to 2%. Flat fee is only for special projects or cases.
Percentage of earnings is preferable because higher the earnings more the commission they will receive. It is mutually beneficial to investor and the financial advisors. Flat fee doesnot provide enough incentive to the advisors to outperform in their investments.

Please Discuss in case of Doubt

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