Boston, Massachusetts – As individuals approach retirement age, the need for sound financial planning becomes increasingly important. Recently, a Reddit user sought advice on the appropriate hourly fee for a fee-only financial planner, sparking a discussion on the costs associated with financial advisory services.
The user, who has a substantial investment portfolio totaling $1.55 million with a heavy focus on tech stocks, sought guidance on portfolio rebalancing. With retirement on the horizon in 2024-2025, the individual aims to ensure their financial assets are aligned with their long-term goals and risk tolerance.
According to financial experts, an hourly fee of $265 for an experienced financial planner is within the reasonable range, falling between $150 and $450 per hour typically charged by hourly planners. The complexity of the individual’s financial situation may require 20 to 25 hours of comprehensive advice, translating to a total fee of $5,000 to $7,000.
Certified financial planner Mark Struthers emphasizes the importance of understanding the scope of services needed, suggesting that basic asset allocation may require only 5 to 10 hours of planning. However, for more in-depth financial planning encompassing retirement income strategies, tax planning, and estate planning considerations, a longer engagement may be necessary.
In situations where clients anticipate changes in retirement income sources, such as Social Security and pensions, additional hours may be required to develop distribution plans that align with their financial goals. This holistic approach to financial planning ensures that all aspects of an individual’s financial well-being are taken into account, guiding them towards a secure and stable retirement.
Ultimately, the decision to engage with a financial planner and determine the appropriate fee structure should align with the individual’s financial objectives and long-term goals. Seeking advice from qualified professionals in the field can provide valuable insights and strategies to optimize financial resources for a comfortable retirement.