Many Americans can benefit from working with a financial advisor; however, some are concerned about the price. We all make investments in ourselves and our families. Hiring a financial advisor can be an investment in your financial future. Financial planning can be a complicated process, and it’s often advantageous to have a partner with financial expertise.
Only in a perfect world would everyone have a financial advisor.
Unfortunately, many people attempt to do investment and retirement planning on their own with poor results. This is usually the result of trying to save money that otherwise would be spent working with a financial advisor. It’s important to have good self-awareness and know one’s limitations. Do you feel that you have the knowledge, experience, and expertise to manage your entire financial life? If not, it may be a good time to speak with a financial advisor.
How much does a financial advisor cost?
Financial advisors can be compensated in many forms, depending on how they are licensed, and how they choose to interact with clients. Some may charge an hourly fee, often in the range of $100-$250 an hour. Some may charge a flat fee, anywhere from $1,500-$4,500 depending on the complexity of the work. Most fee-based investment advisors charge a percentage fee on the assets that they manage, typically between 1-2%. As is the case with much in life, you generally get what you pay for. You may find that if you go with the lowest price, you get less quality. Make sure you think long and hard about who you are going to work with and focus on the ability of the financial advisor, not just the price.
What are the benefits you can expect if you hire a financial advisor?
Some benefits a quality financial advisor will offer:
- Offering a roadmap of your financial future.
- Managing your money, so you don’t have to.
- Unemotional professional opinions.
These are just three benefits to hiring a financial advisor. Many people find much more when working with a qualified financial advisor.
Are you considering speaking with a financial advisor? If so, here are some reasons you should:
Reasons to Hire an Advisor
You need help with your financial planning.
It may be true that every person needs some help with financial planning. Financial planning goals can vary widely, from paying off student loans, to buying a house, managing one’s investments, planning for retirement, and many more. Getting help with your financial plan can increase the likelihood of accomplishing your goals, whatever they may be.
You don’t want the stress of managing your assets yourself.
Investing can be a very stressful process – especially during periods of economic and/or market turmoil. An experienced financial advisor and/or investment manager should be trained to focus on the long-term plan and not get emotional or distracted by short-term issues. A major job for financial advisors is coaching their clients to stay on track with their financial plan.
You want an impartial, third-party opinion on your financial situation.
It’s very hard for an individual to notice and confront their own weaknesses and biases in general, but especially when it comes to financial planning. A financial advisor will hopefully give you objective advice that can be essential to constructing a proper financial plan.
Hiring a financial advisor is quite often worth the price. If you’d like to start yourself on the road to financial success, speak with one of our advisors today. Click here to request a consultation.