Financial Advice is Not for the Top 1%
Having proper financial advice can change a person’s life, but many people don’t know what advisors ACTUALLY do or how much they cost. And there’s millions of people who think they can’t afford to work with an advisor, so they end up going at it alone.
You no longer have to go at it alone, despite not being in the top 1%. Let’s break down some of the wealth management barriers for you. NOTE: Our team at AdvisorFinder does not advise clients, but rather we help people find financial advisors. Some of the most common misconceptions we’ve heard from our users who are searching for advisors:
“Financial advisors are too expensive”
Many people think financial advice is only for the top 1%. It’s not.
Nowadays, there are plenty of advisors who work with clients for the cost of a monthly gym membership or an annual flat fee. Some advisors work with clients on an advice-only basis, which means they don’t offer ongoing investment management, which can save clients money if the client wants to do the investing themselves. In return, an advice-only advisor will help their clients develop a plan for a flat dollar amount. As you can see, there are many different pricing models that are more attractive to some clients that want lower-cost options without sacrificing the level of advice they receive. The new kid on the block is the subscription-model. The model is great for younger professionals who want the advice of an advisor, without the commitment of paying a traditional AUM fee. Also, many advisors work with clients who have <$50k in assets. There are options for anyone!
In most cases, financial advisors charge a 1% fee of your total account. This is called an AUM fee, a percentage of the Assets Under Management.
As you can tell, there are ample options for your unique situation. Also, it’s not always about where you currently are, but more about where you want to be in the future. Your advisor can help you plan for your future, so you can sleep better at night without thinking about financial stress.
“Do I have to move over all my money?”
You can move as much or as little as you want. Your advisor will help assess your current situation and determine what is the best plan of action for you. Diversifying your portfolio doesn’t just mean investing money in stocks. Advisors will also help you understand how to diversify your:
- Taxes
- Real Estate
- Income (Active & Passive)
- Benefits
- Hedging Strategies
- Estate Options
Financial advising is not just about investments. Many people look at financial advisors and just think about the stock market. Great advisors will help their clients with all aspects of their clients balance sheet.
“I’ll start working with an advisor in my 30s”
Starting in your mid-twenties, early in your career, you should work with a financial advisor. Life can get in the way of your goals. Planning ahead will help you prepare for life’s greatest moments and challenges.
People don’t plan to fail, but fail to plan. We’ve heard over and over, “I’m too young to work with an advisor” or “I’ll wait until I settle down”.
