Cost Benchmarks for Financial Planning Services in California

Why "how much does a financial planner cost" doesn't have one answer

Financial planning fees vary meaningfully by firm, by region, and by the complexity of what's being asked for, which makes any single quoted number close to meaningless without context. What follows are general, heavily hedged industry ranges meant to give you a rough sense of scale — not a quote, and not a promise of what any specific firm will charge. Always get a specific written fee schedule before engaging anyone.

Assets-under-management (AUM) fees

The most common pricing structure for ongoing investment management is a percentage of the assets a planner manages on your behalf, billed annually (often in quarterly installments). Industry ranges commonly cited fall roughly in the 0.5% to 1.5% per year range, though this varies by firm and by account size. Many firms use a tiered structure, where the percentage rate decreases as assets under management increase — so a household with a larger portfolio might pay a lower effective percentage than a household with a smaller one, even at the same firm.

AUM pricing has an intuitive appeal — the planner's compensation grows only if your assets grow — but it's worth understanding that it also means the fee scales with your account size regardless of how much work a given year actually requires, which is part of why alternative structures exist.

Flat or subscription-style planning fees

A growing number of firms charge a flat annual or monthly retainer for comprehensive planning, independent of how many assets they manage (or without managing assets at all). Commonly cited ranges for this structure fall roughly in the $2,000 to $10,000-plus per year range, depending heavily on the complexity of the household's situation — a straightforward salaried household typically sits toward the lower end, while a small-business owner with equity compensation, multiple entities, or estate complexity typically sits toward the higher end or beyond it.

Hourly consulting

For households that want targeted advice on a specific question rather than an ongoing relationship, hourly consulting is a common structure. Commonly cited hourly ranges fall roughly in the $200 to $400-plus per hour range, again varying by the planner's experience, credentials, and region. This structure can be a cost-effective way to get a second opinion on a specific decision without committing to an ongoing retainer or AUM relationship.

One-time or project-based plans

Some firms offer a defined, project-based engagement — a single comprehensive plan delivered for a set fee, without an ongoing management relationship afterward. This structure can work well for someone who wants a thorough one-time roadmap and is comfortable implementing and monitoring it themselves going forward, rather than paying for continuous oversight.

How to compare an AUM fee against a flat retainer for your own situation

Because AUM fees scale with assets and flat retainers don't, the two structures can produce very different total costs depending on portfolio size. A household with a relatively large portfolio and a straightforward planning need may find that a flat retainer works out to a lower total cost than an AUM percentage applied to their full balance. Conversely, a household with a smaller portfolio and more complex planning needs might find an AUM fee, applied to a smaller base, costs less than a flat retainer sized for comprehensive work. Running the actual dollar math for your own approximate asset level, under both structures, is a more useful exercise than comparing percentage rates in the abstract.

Costs that sit outside the advisory fee itself

The planner's fee is rarely the only cost in the picture. Underlying investment vehicles — mutual funds, ETFs, or other pooled products — typically carry their own expense ratios, layered on top of whatever the planner charges. Custodial or platform fees, trading costs, and costs associated with specific products like annuities or insurance can add further layers. When comparing prospective planners, it's worth asking not just about their own fee, but about the typical all-in cost once underlying product expenses are included — since two planners with identical advisory fees can produce very different total costs depending on what they recommend investing in.

A useful habit is to ask any prospective planner to walk through a single representative year of total cost — advisory fee, estimated underlying fund expenses, and any platform or custodial charges — added together into one combined figure. That combined number, not any single line item in isolation, is the one worth comparing across firms.

What actually drives the price within these ranges

• Complexity of your situation — business ownership, equity compensation, multiple entities, or blended-family estate considerations typically push fees toward the higher end of any given range.
• Scope of engagement — investment management alone typically costs less than comprehensive planning that also coordinates tax and estate considerations.
• Firm size and overhead — larger firms with more infrastructure and support staff don't automatically charge more, but pricing philosophies do vary firm to firm.
• Regional cost of doing business — fees in higher-cost metro areas can run higher than in lower-cost regions, though this is far from a universal rule.

The one non-negotiable step

Whatever structure a prospective planner uses, ask for a specific written fee schedule before engaging — not a verbal estimate, and not a general reference to "industry standard" pricing. A written schedule should specify exactly how fees are calculated, when they're billed, and what happens if your asset level or scope of work changes. Comparing written fee schedules across two or three prospective planners is one of the most concrete ways to evaluate cost before committing to a relationship.

The takeaway

Financial planning costs commonly fall into a handful of structures — AUM percentages, flat retainers, hourly rates, or one-time project fees — each with wide, firm-dependent ranges rather than fixed prices. Treat any number you read, including the ranges above, as a general orientation rather than a quote, and always get the actual number in writing before you engage.