Cost-Conscious Investors Open to Using a Robo-Advisor

How Much Does a Financial Advisor Cost?

Of survey respondents who do not have a financial advisor, 44% said they are too expensive, and 43% said they manage their own investments and finances. Eighty percent said they would at least consider getting a robo-advisor if they knew it would be less costly.

Unfortunately, the majority of Americans are in the dark about how advisor fees work. Nearly half (49%) of Americans said they do not know how financial advisors' fees are structured, while 36% say they have only a vague idea about them. Just 16% of survey participants purported to be fully knowledgeable about how financial advisors' fees are structured; men were nearly twice as likely as women to say so.

Since most advisor fees are based on assets under management, they may be more affordable than some think, especially for those with fewer assets, according to MagnifyMoney.

Many people seem to think they need to have a significant amount of assets before they should get a financial advisor. More than a third of those surveyed said an investor needs $100,000 or more. Only 28% said investors should get an advisor if they have less than $25,000 in assets.