The short answer is: that depends on the advisor you choose. Financial advisory services don't come cheap, but it's important to know ahead of time how much you'll be paying and that you'll get what you pay for. There are many fee arrangements out there. You must discuss this issue with the advisors you're considering before you make your final choice. Remember: While you don't want to nickel and dime when you're paying for expert knowledge and advice, you also don't want to be taken to the cleaners. Any advisor who won't discuss fees with you before you sign, or won't show you a preprinted fee sheet, is not the right advisor for you.

There are basically three ways fees are determined: commissions, flat fees, and percent of assets, although this is mainly seen with money managers. In addition to base fees, there may also be other charges associated with your account (for example, transaction fees, below-minimum-balance charges, and account maintenance fees), so make sure to ask about all related expenses. You don't want to pay for services you won't use and don't need. Keep in mind, though, you will be charged standard brokerage fees every time you make a trade using a broker, regardless of the way you're paying for advice.

Commissions

Advisors who get paid commissions rather than flat fees earn more money with active accounts than passive (or buy-and-hold) ones. And although there are many scrupulously honest commission-paid financial advisors out there, you may also encounter some who place their own financial interests above yours. Because of this, novice investors often feel more comfortable with fee-only advisors.

Flat Fees

Fee-only advisors are paid a flat annual fee. They get paid (by you) the same amount no matter how much activity your account sees, and no matter how much they grow your wealth. However, these advisors may get commissions from their firms or from mutual fund companies based on which assets they buy and hold in your portfolio. Make sure you know whether that's the case, as it can influence which investments the advisor directs you toward. You can expect to pay at least a few hundred dollars — and as much as thousands of dollars — every year for basic advisory services.

Percent of Assets

If you decide to go the money management route, you can expect to pay for this heightened level of service. The total cost for a money management service averages out to between 1 and 3 percent of assets managed on an annual basis with flat fee advisors. This fee percentage often drops with the size of the account. For example, if you have an initial investment of $25,000 you might pay a slightly higher rate than the person who's bringing $100,000 to the table. The discounts usually get bigger the more money you toss into the asset pot. On the plus side, the manager will earn more as your portfolio grows, giving him incentive to make your holdings profitable. Pricing schedules may include trading, money management, custody, and financial consultation. The bottom line here: The more services you receive, the more you'll pay.

What's Best for You

If you go with a commissioned advisor (but not a money manager), insist on approving every trade before it's made — and actually take the time to understand the advice before acting on it. If you go with a fee-based advisor, find out who she's really working for: you, or the company whose investments she tries to sell you. If you go with a money manager, make sure you know all the fees your account will be charged, not just the advisory costs. The most important thing to take away from this discussion: Get the fee structure in writing before you sign on.