Where is the best place to get financial advice? (2024)

Where is the best place to get financial advice?

1. Your bank or credit union. You already trust your bank or credit union with your money, so explore what free resources they offer. All major banks offer educational resources on their websites which can be helpful, but the amount of accessible 1-on-1 advice varies widely from bank to bank.

Famous financial advisors became household names for a variety of reasons. Benjamin Graham and Warren Buffet are among the most common traditional financial advisors that relied heavily on value investing. Several financial advisors such as Dave Ramsey and Robert Kiyosaki are most known for their print publications.

A financial advisor is worth paying for if they provide help you need, whether because you don't have the time or financial acumen or you simply don't want to deal with your finances. An advisor may be especially valuable if you have complicated finances that would benefit from professional help.

A wealth advisor—or wealth manager—is a licensed financial advisor who helps high-net-worth individuals (HNWIs) and families manage their financial wealth. Wealth advisors work with clients to develop investment strategies, plan for retirement and create wealth-building plans.

For all those reasons, billionaires typically rely on a team of financial experts, including tax specialists, estate planners, investment strategists and security advisors, to navigate their financial landscape effectively.

Generally, having between $50,000 and $500,000 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 $500,000, $1 million or even more.

What is the difference between a financial planner and a financial advisor?

While both offer guidance on investments, taxes and other financial matters, financial advisors generally focus on managing an individual's investment portfolios, while financial planners take a look at the entire financial picture and an individual's long-term goals.

The term "financial advisor" doesn't reflect any specific credentials, so learn what professional certifications and designations the advisors you're researching hold. Also, make sure they're fiduciaries, which means they're legally required to always act in their clients' best interests.

Cost: Robo-advisors typically charge an AUM fee of 0.25% to 0.50%, which works out to $125 to $250 a year on a $50,000 account balance. There are a couple of robo-advisors that charge no management fee, including SoFi Automated Investing and Ally Managed Portfolios.

However, being a financial advisor isn't always easy. They face challenges like keeping up with changes in financial laws and regulations, understanding new investment tools and technologies, and meeting the high expectations of their clients.

Depending on the net worth advisor you choose, you generally should consider hiring an advisor when you have between $50,000 - $1,000,000, but most prefer to start working with clients when they have between $100,000 - $500,000 in liquid assets.

In conclusion, working with a financial advisor can be a great way to achieve your financial goals, but it's important to weigh the pros and cons carefully before making a decision. The cost and the risk of conflicts of interest are the main disadvantages of working with a financial advisor.

Most of my research has shown people saying about 1% is normal. Answer: From a regulatory perspective, it's usually prohibited to ever charge more than 2%, so it's common to see fees range from as low as 0.25% all the way up to 2%, says certified financial planner Taylor Jessee at Impact Financial.

It's important to reveal “personal issues, no matter how potentially embarrassing, if they concern money,” says John Stoj, a financial advisor at Verbatim Financial in Atlanta.

Do banks give you financial advice?

You and your Premier Banking Manager

They're here to make life easier and help you to make the most of your money. If you need financial advice, they could also connect you to our network of qualified advisors.

Defining HNWI

The closest thing to a standardized definition of an HNWI comes from the Securities and Exchange Commission (SEC), which defines an HNWI as someone with a net worth of at least $2.2 million, or $1.1 million in assets managed by an advisor.

While there's no legal standard when it comes to defining who is an ultra-high-net-worth individual (UHNWI), they're often defined as those who have $30 million or more in assets. These funds must be in investable assets, which is an important distinction to make.

Because you'll likely pay higher fees to a wealth manager, ensure you require the broader scope of services they provide. If you're just looking to put together and maintain a retirement portfolio, a financial advisor might be all you need.

Millionaires can insure their money by depositing funds in FDIC-insured accounts, NCUA-insured accounts, through IntraFi Network Deposits, or through cash management accounts. They may also allocate some of their cash to low-risk investments, such as Treasury securities or government bonds.