Looking for a financial advisor? Wondering how you'll pay him or her — and just how much?
There are three types of advisors you can work with, according to certified financial planner Ron Carson, founder and CEO of Carson Wealth Management Group. The first will charge you commission; the second, a management fee on the assets handled; and the third, a hybrid of the first two approaches. But all might also charge you hidden fees.
"When you're working with a financial advisor — regardless of what type of advisor they are — you need to really understand not only how they're being compensated but what are the fees that aren't so transparent," said Carson, adding that many advisors themselves don't understand all the hidden fees and expenses associated with asset management.