How Much Should You Make Before Hiring a Financial Advisor?

In the realm of personal finance, one question often stands out: "How much should you make before getting a financial advisor?" The importance of financial planning cannot be underestimated whether you're just starting your career or you’re well into your retirement years. But at what income level does it become viable to hire a professional for financial advice? A financial advisor provides advice and guidance to clients regarding investments, insurance, and other financial planning matters. They also help clients set financial goals and make plans to achieve those goals. And perhaps most importantly, a financial advisor can help you prevent making emotionally charged decisions to buy or sell investments. Do you need help managing your money? If you’re like many Americans, you might need a hand. According to the National Financial Education Council, a lack of personal finance knowledge costs the average American $1,300 a year.

In addition to providing advice on investments, financial advisors help clients plan for retirement, manage their taxes and navigate life changes such as marriage or the birth of a child. The best financial planner is the one who can help you chart a course for all your financial needs. This can cover investment advice for retirement plans, debt repayment, insurance product suggestions to protect yourself and your family, and estate planning.

Keep in mind that financial advisors provide more than just investment advice. People with complex financial needs may need extra assistance. They could be looking to establish college funds or trusts for their children, navigate aggressive debt payment situations, or solve tricky tax problems. Not all types of financial advisors offer the same menu of services, so

decide which services you need and let this guide your search.

How Much Money Do I Need to Hire a Wealth Manager?

There's a common misconception that you need to be a multi-millionaire to hire a wealth manager or financial advisor. However, the threshold isn't as high as many believe. The answer to "at what net worth should I get a financial advisor" varies depending on different factors, including your financial goals and complexity of your financial situation. The amount of money that you’ll need as well as how much you should have before it really pays off might have the same answer. The right amount of money you’ll need will depend on what you’re looking for a

financial advisor to do, as well as how much you’ll have to pay in fees. Generally, having between $50,000 and $100,000 of liquid assets to invest can be a good point to start looking at hiring a financial advisor. Some advisors have minimum asset thresholds. This could be a relatively low figure, like $25,000, but it could be $500,000, $1 million or even more. In

general, if an advisor requires a minimum of $100,000 to open an account, you can assume that the financial advisor also offers wealth management services, tax and estate planning. However, wealth managers are not the only financial advisors. People with less than $100,000 in assets can also benefit from hiring a financial advisor. If you have no or very little (we’re talking less than $25,000) in cash, you could speak to a Certified Financial Planner™ (CFP®) or Chartered Financial Analyst® (CFA®) who could help you formulate a starter plan to build up your assets.

Do You Need to Be Wealthy to Have a Financial Advisor?

The short answer is no. You don't need to be wealthy to have a financial advisor. Financial advisors are not just for the rich. They can provide value to people at all income levels. The question of "at what age should I get a financial advisor" is more relevant. It's never too early or too late to start planning for your financial future.

What is the Average Cost of Using a Financial Advisor?

The average cost of using a financial advisor varies depending on the advisor and the services they provide. Some charge a percentage of the assets they manage, typically around 1% to 2%. Others might charge a flat fee or an hourly rate. It's important to understand the cost structure before hiring an advisor.

Is It Worth Paying for a Financial Advisor?

Many people ask, "Is it worth paying for a financial advisor?" The answer depends on your personal circumstances. If you're struggling with complex financial decisions, a financial advisor can provide valuable advice. If you're looking for a "financial advisor near me", consider their expertise, cost, and the potential return on your investment.

In conclusion, deciding when to get a financial advisor is a personal decision that depends on various factors, including your income level, financial goals, and comfort with managing your own finances. The important thing is to make an informed decision. Whether you're contemplating, "should I use a financial advisor or do it myself", remember that professional advice can be beneficial at any income level. If you're ready to take the next step in your financial planning journey, consider reaching out to a trusted financial advisor today.

Any opinions are those of Reynolds Wealth Management and not necessarily those of Raymond James. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Past performance may not be indicative of future results. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Every investor's situation is unique, and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. You should discuss any tax or legal matters with the appropriate professional.

In a fee-based account, clients pay a quarterly fee, based on the level of assets in the account, for the services of a financial advisor as part of an advisory relationship. In deciding to pay a fee rather than commissions, clients should understand that the fee may be higher than a commission alternative during periods of lower trading. Advisory fees are in addition to the internal expenses charged by mutual funds and other investment company securities. To the extent that clients intend to hold these securities, the internal expenses should be included when evaluating the costs of a fee-based account. Clients should periodically re-evaluate whether the use of an asset-based fee continues to be appropriate in servicing their needs. A list of additional considerations, as well as the fee schedule, is available in the firm's Form ADV Part 2 as well as the client agreement.