Hourly Financial Planning Fee
As I continue to develop my business I am trying to diferentiate my services between investment management and financial planning. For most of my clients I simply manage their investments on a fee basis, and for most of those clients I provide some basic financial planning services for free. However, more and more I am getting clients that want financial planning services but maybe don't have an account with me at that time. What is a typical hourly fee that advisors charge for financial planning? I am in a rural town so prices here tend to be on the lower end of the spectrum, but I obviously still want to make it worth my while. Can anyone give me a range of typical fees?
$150/hr with a minimum of $500 is a good place to start. Part of it depends on your target market.
Thanks for the insight gentlemen. I like the idea of fixed fees for planning, other than the uncertainty of time it can take for any given financial plan. As I do more plans maybe I will get a better handle on how much to charge individual clients. I'll probably start out giving clients a choice between hourly or fixed and tweak things as I go. As joelv72 suggested, I will probably go with $500 or $150/hour to begin with, although I may have to lower the fees as the market seems pretty soft right now for financial advice. Hopefully I will be able to increase them as I develop my market a bit more.