Who is the best person to talk to about investing money?
Before making financial or investment decisions, U.S. News recommends that you contact an investment advisor, or tax or legal professional.
You can also get investment advice from most financial institutions that sell investments, including brokerages, banks, mutual fund companies, and insurance companies.
Certified financial planner (CFP).
This person has been awarded the CFP designation by the CFP board and is highly qualified to advise you on a wide range of topics. These topics can be anything from starting to invest to saving for long-term goals.
The U.S. Securities and Exchange Commission (SEC) provides an easy way to check out an investment professional or firm using a free and simple search tool on Investor.gov . The free tool provides information about SEC-registered and state-registered investment advisers as well as the individuals who work for them.
| Broker | Best for | Assets under management |
|---|---|---|
| Facet | Flat fees | $1 billion |
| Vanguard | Low fees | $7.6 trillion |
| Edward Jones | Choosing your own advisor | $1.6 trillion |
| Charles Schwab | Customizable services | $500,000 |
If you're finding things difficult
You should talk to your GP if your money problems are affecting your mental health. You can find other ways to get help with your mental health on the Mind website.
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.
It's smart to use a financial adviser when you need or want professional financial advice. If you happen to have a high net worth and you're comfortable managing it yourself, there may be no need. Even if you don't have a high net worth, if you have a complex situation to deal with, you may want to consult someone.
- Qualifications. Look for an adviser who is qualified and experienced in the areas that are important to you. ...
- Fees. Financial advisers charge different fees for their services. ...
- Expertise. ...
- Approach.
Check their professional credentials. Consumers looking for financial advisors should also check their professional credentials, seeking out well-recognized standards such as chartered financial analyst (CFA) or certified financial planner (CFP). These designations require their holders to act as a fiduciary.
What are the disadvantages of having a financial advisor?
Costs: Financial advisors cost money, and not all charge you in the same way. Some charge a percentage of your total portfolio per year. Others charge you an ongoing annual fee, some charge a one-off service fee, while the investment broker pays others via commissions.
Those who use financial advisors typically get higher returns and more integrated planning, including tax management, retirement planning and estate planning. Self-investors, on the other hand, save on advisor fees and get the self-satisfaction of learning about investing and making their own decisions.
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.
Visit FINRA BrokerCheck or call FINRA at (800) 289-9999. Or, visit the SEC's Investment Adviser Public Disclosure (IAPD) website. Also, contact your state securities regulator. Check SEC Action Lookup tool for formal actions that the SEC has brought against individuals.
| Fee type | Typical cost |
|---|---|
| Assets under management (AUM) | 0.25% to 0.50% annually for a robo-advisor; 1% for a traditional in-person financial advisor. |
| Flat annual fee (retainer) | $2,000 to $7,500. |
| Hourly fee | $200 to $400. |
| Per-plan fee | $1,000 to $3,000. |
| 2024 Rank | Name | Firm |
|---|---|---|
| 1 | Michael Warr | Morgan Stanley Private Wealth Management |
| 2 | Tony Smith | Stonegate Investment Group |
| 3 | Christopher Compton | Stonegate Investment Group |
| 4 | Brian Woodke | Merrill Wealth Management |
- Use an online financial advisor matching service. ...
- Check the CFP Board website. ...
- Look into professional finance advisor organizations. ...
- Tap into a financial planning network. ...
- Consider robo-advisors. ...
- Ask for a recommendation.
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.
- Food assistance. ...
- Unemployment benefits. ...
- Welfare benefits or Temporary Assistance for Needy Families (TANF) ...
- Emergency housing assistance. ...
- Rental assistance. ...
- Help with utility bills. ...
- Government home repair assistance programs.
Financial Planner. A financial planner is to your money what your primary care doctor is to your health. Your financial planner is the big-picture person, the one you talk to first about any financial issues. They can help you make a plan to pay off debt, save for college, or invest for retirement.
How much money should I have before getting a financial advisor?
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.
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.
Of high-net-worth individuals, 70 percent work with a financial advisor.
Not only is a CPA an excellent referring source, but also lawyers, insurance agents and even your mortgage broker. Use an online advisor search. These are professionally managed databases that include financial advisors that not only work with smaller clients, but may already cater to younger generations.
Whereas financial planners focus on retirement planning, estate planning and more, investment advisors are focused on helping you invest. Whether you're investing in mutual funds or looking to transform your wealth with a financial plan, you may want to consider working with a financial advisor.
