For many, working with a financial advisor may seem like something for the super rich. But you don’t need to be wealthy to potentially benefit from financial advice.

A financial advisor could help you best determine if you are on track to meet your long-term financial goals. This expert could work to help you potentially save more, reduce your debt and invest more wisely.

Consulting a fiduciary financial advisor can be a great first step to helping make sure you’re on track to meet your financial goals, regardless of your income level. That's why we created a free tool to help match you with up to three financial advisors.

Click here to take our free quiz and get matched with vetted advisors in just a few minutes, each obligated to work in your best interest.

Research suggests people who work with a financial advisor feel more at ease about their finances and could end up with about 15% more money to spend in retirement.¹

A 2022 Northwestern Mutual study found that 62% of U.S. adults admit their financial planning needs improvement. However, only 35% of Americans work with a financial advisor.²

How Much Money Should You Have Before Hiring a Financial Advisor?

Investment managers, financial consultants, financial planners and even robo-advisors are all considered financial advisors. As a result, minimum thresholds vary widely.

For example, an article from Delta Wealth Advisors notes that depending on the net worth advisor you choose, you should consider hiring a financial advisor when you have between $50,000 - $1,000,000, but indicates that between $100,000 - $500,000 in liquid assets is the level at which an advisor’s benefits potentially outweigh the costs.³

Some advisors may have minimum asset thresholds and could vary by advisor or firm. This could be a relatively low figure, like $25,000, but it could also be $500,000, $1 million or more.

However, people with less than $100,000 in assets could potentially benefit from hiring a financial advisor and getting guidance on how to potentially grow their wealth.

How Much Do Financial Advisors Cost?

For many, the excuse for not working with a financial advisor is the false assumption that they can’t afford it. In actuality, the fees financial advisors charge could potentially be less than most people think, and the insights they add could potentially surpass an advisor's cost.

There are two types of financial advisors: fee-only and commission-based.

Fee-only financial advisors are preferable, especially fiduciaries, who are obligated by law to act in your best interest and disclose any potential conflicts of interest.

This free quiz can match you with up to three fiduciary financial advisors who serve your area in just a few minutes.

Commission-based advisors, on the other hand, are paid based on the product referrals and sales they make.

The truth is, financial advisors often charge a percentage fee for Assets Under Management (AUM) of between 0.59 - 1.18%. A 2021 AdvisoryHQ study found that the average AUM fee for a $50,000 account was about 1.18% or $590.⁴

Common Fee Types & Costs³

• Percentage of Assets Under Management: 0.59% - 1.18% per year
• Fixed Fees: $7,500 for portfolios under $500K
• Hourly Fees: $120 - $300 per hour

The figures above are examples only and used to illustrate what typical fees for financial advisors and their structure looks like. Please carefully review fee structures with your investment advisor and review your advisor’s form ADV and CRS.

How to Find a Financial Advisor

Consulting a fiduciary financial advisor could help you determine a plan that factors your assets and taxes into your overall retirement and estate-planning goals. Fiduciaries are obligated by law to act in your best interest and any potential conflicts of interest must be disclosed.

Yet knowing how to find a vetted fiduciary advisor is, for many, the most confusing task of all. Common Google searches related to the topic reveal a desperate search for direction. "Fiduciary financial advisors near me,” "best fiduciary financial advisor,” and "financial investment advisors near me” are searched hundreds of times per day.

Finding a fiduciary shouldn't be that hard. Thankfully, now it isn't.

Our free matching quiz helps Americans get matched with up to three fiduciary advisors who serve their area so they can compare and decide which advisor to work with. All advisors on the matching platform have been rigorously vetted through our proprietary due diligence process.

The quiz takes just a few minutes, and in many cases, you can be connected instantly with an advisor to have an introductory call.

Sources:

This is not an offer to buy or sell any security or interest. All investing involves risk, including loss of principal. Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). There are no guarantees that working with an adviser will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest. SmartAsset Advisors, LLC ("SmartAsset"), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Securities and Exchange Commission as an investment adviser. SmartAsset’s services are limited to referring users to third party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States that have elected to participate in our matching platform based on information gathered from users through our online questionnaire. SmartAsset receives compensation from Advisers for our services. SmartAsset does not review the ongoing performance of any Adviser, participate in the management of any user’s account by an Adviser or provide advice regarding specific investments. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors.

SmartAsset.com is not intended to provide legal advice, tax advice, accounting advice or financial advice (Other than referring users to third party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States). SmartAsset is not a financial planner, broker or tax adviser. The Service is intended only to assist you in your understanding of financial organization and decision-making and is broad in scope. Your personal financial situation is unique, and any information and investing strategies obtained through SmartAsset.com may not be appropriate for your situation. Accordingly, before making any final decisions or implementing any financial strategy, you should consider obtaining additional information and advice from your accountant or other financial advisers who are fully aware of your individual circumstances.

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