When you're hiring a financial advisor , it's crucial to understand how that professional gets paid.

To consumers, it may seem like a simple question to ask — but the answer isn't necessarily straightforward.

About 36% of consumers don't know how they pay for a savings or investing relationship with a financial firm, according to a 2023 Hearts & Wallets survey . Another 20% said they think their financial service is free .

Many of those clients are likely mistaken, although some advisors and organizations do provide advice on a pro bono basis for underserved communities.

"Everybody gets paid one way or another," said Kathryn Berkenpas, the managing director of corporate growth at the CFP Board, which oversees the certified financial planner designation.

More from Financial Advis

See Full Page