Financial advisers can be compensated in several ways. One is by an hourly rate, similar to how many lawyers charge for their services. Depending on the area of the country and a financial adviser's reputation, experience, and client demographics (e.g., high net worth versus middle-income clients), hourly fees could range from $100 to $300 (or more) per hour. Some financial advisers charge for their services using an "assets under management" (AUM) model. A fee of 1% of the amount under management is not uncommon; for example, a fee of $4,000 for a $400,000 portfolio. Often, the percentage rate decreases when the amount of assets being managed increases. As for tax preparation fees, they can vary widely depending whether you use a storefront shop (e.g., Jackson Hewitt, Liberty, H&R Block) or a certified public accountant. For any professional financial advice or service, compare several competing providers. For more information about shopping for professional financial advisers, see Selecting Your Team of Financial Professionals. We would like your feedback on this Personal Finance Frequently Asked Question.

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