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Should I Get A Financial Advisor if I’m Not Rich?

Should I get a financial advisor if I don’t make a lot of money?

Gone are the days when financial advisors only work with the rich and people with lots of assets.

Nowadays, there are financial advisors, especially fee-only advisors, who are available to work with regular folks or the middle class. They can charge anywhere from $75 to $350 an hour, or charge you a flat reasonable fee for their services.

SmartAsset free matching tool can find you a financial advisor in your area in 5 minutes.

So, if you see yourself asking the question: “should I get a financial advisor?” The answer depends more on whether the advice you’re seeking is a complex one, rather than whether you can afford it.

Indeed, if you make at least $50k annually, you may have room to afford a fee-only financial advisor. The benefits of doing so can potentially save you thousands in the long run. It can help you make better financial and investments choices.

You might be wondering “should I get a financial advisor?” and “when to get a financial advisor?” That’s where this article comes in. We’ll give you a run down of the different types of financial advisors out there, how much they charge, and how much your financial life can change for the better.

Before you start choosing a financial advisor though, you need to think about why you need the financial advice for?

Are you approaching retirement and need help with investing strategies? Are you looking to save 100k for a down payment on a house? What about investing 100k to grow your wealth? Or are you simply looking for financial advice in general?

Remember, financial advisors can advise on multiple money subjects. They can advise on how to buy a house, how to save money for your children’s education, or how to invest money and in which investment vehicles to park your hard earned cash.

If you have a major turning point in your life, like getting married, going through a divorce, a major illness, or starting a family, they can help with that too.

How to find a Financial Advisor?

Finding the right financial advisor is easy. Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

Should I get a financial advisor?

Before you decide whether you should get a financial advisor, you probably want to know exactly what they are about and what they can do for you. Here’s a quick overview:

A financial advisor can guide you through the ups and downs of the economic market so you can meet your long term and short term goals.

Types of Financial Advisors

There are different types of financial advisors. In terms of their specialty, while some financial advisors can advise on a broad range of financial areas. Those subjects include budgeting, investing, estate planning, retirement, risk management, taxation, etc.

Other financial advisors specialize in one particular area.

So if you’re looking for retirement advice, your best option is to work with an advisor who has helped others with retirement strategies. On the other hand, if you want help with estate planning, you need to find yourself an advisor with a specialty in estate planning.

How financial advisors charge for their services?

In terms of how much a financial advisor cost, they get paid in three ways: commission-based, fee-based and fee-only.

Commission-based financial advisors receive a commission when they sell you financial products such as mutual funds, annuities, and insurance. 

Fee-based advisors not only provide financial advice for a fee, but they also get paid a commission on the financial products they sell you.

Fee-only advisors. As for the “fee-only” advisors, they only charge you for their services hourly. Or they might charge you a flat rate, or a percentage of the assets they manage for you.

Out of the 3, “fee-only” advisors are strongly recommended. For one, it’s the less expensive route. Second, there is less of a conflict of interest, because they are not selling financial products to you.

Are these financial advisors trustworthy?

All financial advisors must adhere to rules aimed at protecting you as the consumer, which include obligations like acting efficiently honestly, fairly, and in your best interest.

When deciding if a financial advisor is trustworthy, your best bet is to check their credentials online.

Check the Investment Adviser Public disclosure website to check if that person is authorized and licensed to give you the kind of advice you’re seeking.

But financial advisors through the SmartAsset’s free matching tool erases all this doubt, so you can have a peace of mind knowing that your advisor will be working in your best interest.

In fact, each advisor has been vetted by SmartAsset and is legally bound to act in your best interest. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started with SmartAsset today.

How do I find a financial advisor?

Through SmartAsset of course! Simply click through the free matching tool, answer a few questions and the tool will match you with up to three (3) financial advisors in your local area.

Is getting matched difficult?

Getting matched is very easy. All you need is only 5 minutes to answer some questions. And you will be on your way to working with your financial advisor.

Questions to ask a financial advisor:

Getting matched with a financial advisor is only the first step; you also need to know what questions to ask. And based on the answers you receive, you will know whether you have made the right decisions. Here are some of the questions to ask a financial advisor:

  • How much do you charge for your services?
  • What kind of services do you provide?
  • What are your qualifications and experiences?
  • Are you a fiduciary?
  • How will we communicate with each other?

In sum, if you’re still asking yourself the question “should I get a financial advisor?, the answer is probably yes. Do you have a good understanding of financial matters? Do you have time to manage your investments? If you answer yes to any of these questions, then yes you should get a financial advisor.

More financial advisors coverage:

5 Mistakes People Make When Hiring A Financial Advisor

How to Choose A Financial Advisor

Steps to Getting A Financial Advisor in Your 20s

5 Questions To Ask A Financial Advisor

5 Signs You Need A Financial Advisor

Speak with the Right Financial Advisor

You can talk to a financial advisor who can review your finances and help you reach your goals. Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

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