How We Charge for Our Services Financial advisors can charge for their work in one of three basic ways, or a combination of the three:Advisory Fee – Advisors can charge an annual fee as a percentage of the assets under management with them. An example would be if you have a $100,000 account and the advisor charges 1%, you pay $1,000 per year to the advisor. Advisory fees are generally used when there is continual, ongoing financial advice. Flat fee or hourly rate – Advisors may charge a flat fee for devising a financial plan or charge an hourly rate for work performed. This works well for those who manage their own investments but want a second opinion, or those who want to separate the financial planning services from the investment management services.Commissions – Advisors can charge a commission, also called a sales charge or sales load. The commission can be up-front, as a percentage of the purchase amount, or on the back-end if you take money out of the account within a certain number of years. Commission based accounts also often pay advisors a trail fee, also called a 12b-1 or service fee, on an ongoing basis. Commissions are generally used if you are looking for someone to manage your money but have questions and concerns now without too much need for ongoing advice.In addition to the above charges that come from the advisor, you should understand that many investments have underlying costs as well.Because Monica most enjoys providing continual, ongoing financial advice while developing long lasting relationships with her clients, she normally charges an advisory fee. The maximum advisory fee is 1.27% and reduces as the amount invested grows. In some instances, a flat fee for a financial plan is most appropriate. Commission based accounts are held only as an accommodation for those who previously paid commissions and do not wish to convert to an advisory fee arrangement.