Is it worth it to talk to a financial advisor?

While some experts say that a good rule of thumb is to hire a counselor when you can save 20% of your annual income, others recommend getting one when your financial situation becomes complicated, such as when you receive an inheritance from one of your parents or want to increase your retirement funds. Always ask a potential advisor if he or she is a fiduciary. This means that they work for you and are legally obligated to act in your financial interest. As every good poker player knows, frightened people don't act by logic.

The best financial advisors are able to keep their clients' concerns in check by providing constant, fact-based advice when markets are teetering or going crazy. Russell's study also identified this as the most important benefit of working with a financial advisor. A financial advisor can give you valuable information about what you need to do with your money to achieve your financial goals. But they don't offer their advice for free.

The typical advisor charges clients 1% of the assets they manage. However, rates usually fall the more money you invest in them. So you may be wondering if it's worth paying a financial advisor, but that answer is very personal to you. If you need help finding a financial advisor, try using SmartAsset's free matching tool.

Many people wonder if financial advisors are worth it: what is their average cost, if the fee is reasonable, if they should hire investment advisors or financial planners, etc. Vanguard says there are many ways a financial advisor can add value to their efforts to grow their wealth. A commonly accepted misconception in investing is the belief that you must use a financial advisor to be prosperous. The services provided by financial advisors will vary depending on the type of advisor, but generally speaking, a financial advisor will assess your current financial situation, including your assets, debts and expenses, and identify areas for improvement.

Once all the details are in hand, the financial advisor can come up with a plan and provide advice on investing, retirement planning, estate planning, tax liability, and your children's college education. A financial advisor helps investors avoid emotional investing, which is investing out of fear or greed. A study by Vanguard found that by turning to the services of a financial advisor, it could improve its results by up to three percentage points a year. A financial advisor can also be a financial planner or provide financial planning as part of your service repertoire.

If you still don't know whether or not you need a financial advisor to be a successful investor, consider the pros and cons. The average price of financial advisors from Pittsburgh investment firms is not the easiest to quantify, as there are many ways to charge for services with a wide range of fees. If you ask yourself “is it worth paying a financial advisor 1%, robo-advisors may seem like an attractive cost-saving alternative. Focus on finding a good financial advisor through recommendations from friends and others or interviewing candidates to see if they are a good fit for your financial needs.

So, if your to-do list is endless and you never have time to address your personal finances, you may need a financial advisor.

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