Most people make assumptions when it comes to not using a financial advisor. The assumptions generally are: my life is not complex enough to need one; I am smart enough and do it myself; advisors are not trustworthy; I am not rich enough.
We will dive into this last one because it is the most prevalent of the incorrect assumptions about financial advisors. And yes, each of the above assumptions are incorrect.
So how much money do you need to have in order to have a financial advisor? The answer is zero. If you have not one stock, bond, or retirement account, the kind of financial advisor you then can get, and should get is called a financial planner. What a financial planner does is look at everything in your life that involves money, and comes up with a blueprint if you will, of how to achieve your goals. They look at your income, your expenses, your savings, literally everything you spend money on and tell you the truth about how to get where you want to be. They can charge from as little as $75 per month, up to thousands of dollars for one-time financial plan if your life is particularly complicated.
Now what about if you do have an investment portfolio, and you want advice on how to better invest it. How much do you need to justify a financial advisor? Again, the answer is very little. There are advisors that literally have no minimum. In this case, they too will charge either an hourly fee, monthly fee, or flat fee to opine and adjust your portfolio. On the other hand, many advisors do have an investment minimum, as most advisors charge 1% of your assets to manage your money on an ongoing basis and need a minimum in order for them to justify taking on a client. It is common for advisors to have an account minimum of $250,000; $500,000, or millions. To reiterate, there are many advisors however that have small minimums like $25,000 or no minimum at all.
The great news for consumers and investors is that in todays world, services like MyPerfectFinancialAdvisor, and its competitors and websites all make it much easier to find out an advisor’s minimum so you don’t waste time speaking to an advisor that is not a fit.
Contrary to many people’s assumptions, you do not need to be a Jeff Bezos, a Rockefeller, or even a millionaire to have a financial advisor. These days you can find a qualified, licensed financial advisor regardless of your wealth or income level.
www.MyPerfectFinancialAdvisor.com is the premier matchmaker between investors and advisors using personalized data, proprietary algorithms, and deep industry experience.