Dave is considering hiring a financial advisor for his $4-5 million estate. He’s comparing an $8,000 flat fee to a $35,000 asset-based fee. Understanding service levels is key in this decision.

Flat-fee and fee-only advisors have different service models, leading to varying annual fees. Evaluating services and fees is crucial when choosing the right advisor for your financial needs.

Fee-only advisors charge a percentage fee based on assets under management. This could lead to fluctuations in fees depending on portfolio performance. Understanding fee structures is essential for making an informed decision.

Fee-only advisors are paid based on asset growth, promoting alignment of interests with clients. However, this may incentivize advisors to manage portfolios too aggressively or conservatively.

Fee-only advisors typically calculate fees quarterly based on a scaled system. As assets under management increase, the percentage fee generally decreases. Matching with the right advisor is crucial for financial planning success.

Service delivery is the key difference between advisors. Consider how often you’ll meet with them, what deliverables they provide, and their level of involvement in implementing the financial plan.

Finding the right financial advisor involves assessing their services, fees, and alignment with your financial goals. It’s essential to evaluate both functional and emotional aspects of the advisor-client relationship.

Creating a list of priorities and weighting them can help make an unbiased decision when choosing a financial advisor. Consider how well each advisor’s services align with your needs and goals.

Finding a financial advisor involves considering specialized services, fee transparency, and legal history. SmartAsset’s tool matches you with vetted advisors who can help you achieve your financial goals.

Emergency funds should be kept in a liquid account to cover unexpected expenses. Consider high-interest accounts to earn compound interest while maintaining liquidity.

Jeremy Suschak, CFP®, provides financial planning advice and answers reader questions on personal finance topics. Consider factors like service offerings, fee structures, and legal history when choosing a financial advisor.

Read more at Yahoo Finance: Is an $8k Flat Fee Better Than a $35k Advisory Fee on $4M to $5M?