Originally Posted by thinker25
No, actually not at all (Ameriprise). There are fee-only financial planners who don't get a commission on sales. But I'm not advocating using them - except instead of the ones who make their money on commission.
Much confusion on here when the word "fee" has been used over the years. There are basically TWO kinds of fee structures:
1)HOURLY Fee: Someone who charges an hourly or billable rate like an attorney or CPA and does work on that basis. Average rate around here is $100-$150 an hour. This business model is almost dead, because they can't find enough folks that want the planning.
2)Fee based on ASSETS: Most common. The FP charges a fee based on the assets you give him/her to manage.
Ameriprise has not changed their structure. Their CFP's charge an annual "consultation fee" of $500-$1500 depending on the client. Above that, they either charge a fee on assets they manage or commissions.