The costs associated with an advisor may not be affordable for someone with fewer assets. Some financial planners and advisors will work with savers only once, either to develop a financial plan or to help with a specific topic or question. All customers should know how much the financial advisor costs to determine if the service is worthwhile. Finally, if you have enough money saved and want ongoing help managing and growing your wealth, a more traditional financial planner might be a good option.
A financial advisor can help you create a roadmap to keep your financial life on track, Kress said. AFCs are certified by the non-profit Association for Financial Counseling and Planning Education and can help you navigate confusing financial issues such as budgeting, paying off debts and saving for retirement. A basic online service can offer the same automated investment management that you would get from a robo-advisor, plus the ability to consult with a team of financial advisors when you have questions. Time is money, and there is a cost to delaying good financial decisions or prolonging bad ones, such as keeping too much cash or postponing an estate plan.
You can also look for financial advisors with professional designations, such as a certified financial planner. A financial advisor, the general term commonly used to refer to financial planners, although it also includes other financial professionals, could be the person who helps you. If you need help with a financial plan or setting up your children's college fund, this would be a good option. Marriage, buying a home, creating a family, changing jobs, children going to college, all of these have financial implications and would benefit from unbiased financial planning, Zung said.
Generally, commission-based financial advisors only offer investment management for a one-time fee of between 3% and 6% on the sale or purchase of the fund. Sometimes, the same professional can provide wealth management and financial advisory services. Changes in mutual fund options at your brokerage can also have a big impact on your financial situation.