CFP average fee

[jpham540]

Hello, I was wondering what would be an average fix/hourly fee you would pay for a CFP, or do you use one at all? I been using a CFP for about 2 years now that charge a fix fee of $1,440 a year for financial planning, investment, and to do my taxes. I was wondering if that’s a fair price are am I paying too much? My CFP does not get pay commission just that fix fee, I kind of like the idea of having someone experience to give me some tips so that they can keep me in line of my long term goals. Just wanted to get some inputs. Thanks

[doingitallwrong]

How often do you meet with your CFP? How complicated are your taxes? How much do you have invested with him, and how does he manage your money? (Is he proactive? Reactive? Does he have discretionary authority (can he make trades without asking you first)?)

I work for a CFP and for most clients we charge an annual advisory fee of 1-1.5% of the account value, billed quarterly. (It's usually set up through our broker/dealer so it comes right out of the account.) Most clients are seen at least quarterly, more often when the market is more volatile. We have discretion but rarely use it, generally the CFP will call the client with his recommendation and get their agreement before we make any trades. I honestly don't know how 'fair' this arrangement is, either, but there at least is a little motivation for him to increase the account values. (I do recall hearing on some broker's commercial about a 2% fee, which of course seemed high to me, but maybe that's the norm.)

Taxes are not included for the most part, we do taxes here but bill them separately. Occasionally we'll waive the tax preparation fee for special clients, but usually not. We do sometimes prepare retirement projections for our working clients (most of them are already retired) and do not charge for those.