How much does a financial advisor typically cost and is it worth the fee?

Costs vary by model. The traditional assets-under-management fee is often around 1% of your portfolio annually, which sounds small but compounds into a large sum over decades on a big balance. Fee-only planners may instead charge a flat annual retainer, an hourly rate, or a one-time project fee for a plan, which can be cheaper for people who mainly need guidance rather than ongoing management. Robo-advisors charge a fraction of a percent. Whether it is worth it depends on complexity: advisors add the most value with tax coordination, behavioral coaching in downturns, and complex situations like equity compensation or retirement drawdown. For a simple, disciplined investor, low-cost index funds may make full-service fees hard to justify. Match the fee model to what you actually need.