Most people don’t get financial advisors, not because they believe that they don’t need one but because of the price in hiring one.
We have to admit though, that sometimes, spending a little money now can mean a lot of savings or more money in the future. A solid advice from a financial advisor now can be the investment that you need for your future.
How do you know that this is the right time to get a Financial Advisor?
We have to admit, financial advisors don’t come cheap. It is not because only rich people who have money need them, but also because we are utilizing their financial skills on which, they spent time and effort to hone and sharpen. Not to mention that these people also have to earn a living.
Cost of Financial Advisors
The rates and fees of financial advisors varies.
Financial planners who are being paid as fee-only have rates that range from $1,000 to $2,000. That is just for creating your financial plan. They would have a retainer fee of around $200 monthly, for giving ongoing advice.
Investment advisors who are also fee-only on the other hand, normally would have a fee that is a certain percentage of those assets that you invested. The normal benchmark is around 1%, although depending on the advisor, this could be less or more.
Other advisors get their fees from investment companies and banks. They earn from commissions on those investment products that you buy.
One important thing to remember before hiring an advisor is to ask them how they are paid.
Benefits of hiring your own financial advisor
If you hate worrying about money matters, your advisor can handle of it for you
Most people like money (I mean, who doesn’t?) but some don’t like to manage their own financials. Then it is time to get a financial advisor.
Remember though that for an advisor to accept you as a client, you would need to have investable assets.
Depending on the advisors, some require that you have at least $500,000 to $1 million investable assets, others are okay with $100,000 while others will still accept $50,000. Shop around and compare to find your perfect advisor.