Do I Have To Be Rich To Have A Financial Advisor

Do I Have to be Rich to Have A Financial Advisor?

Financial planners can often seem like something only the wealthy need. However, you may be surprised at how much they can help your situation.

Updated on Feb 03 2020

Financial planners can often seem like something only the wealthy need. After all, aren’t they the ones who have complicated investments and large assets? And, if you feel like you don’t have much disposable income, many people wonder why they should pay someone to look after their money.

The benefits of a legitimate financial advisor are unparalleled. Living paycheck to paycheck with no retirement savings makes it seem like you can’t afford an advisor. Some will tell you that if you are in that situation, you can’t afford not to have an advisor. While we think that’s a little dramatic, and there are those who go their entire lives without a financial advisor, you may be surprised at how much they can help your situation.

What can a financial advisor help me with?

When people think of financial advisors, they typically think of those who help to diversify retirement investments. While this is generally a big bulk of the work, many of them are there to offer financial advice that works for your particular situation. A good financial planner will give advice regarding the following:

  1. Financial planning
  2. Budgeting
  3. Estate planning
  4. Retirement planning
  5. Investing
  6. Tax planning

A financial advisor can take a look at your finances and let you know how much you need to save, what should be in your emergency fund, what changes to make to improve your tax situation, and what you should be doing differently. This type of advice can prove invaluable. Ask your advisor to put their advice in writing, so that there is no room for question about what action should be taken.

What kind of financial advisor would work best for me?

For someone with little extra income, a fee-only advisor is recommended. Fee-only advisors are generally Registered Investment Advisors (RIA) and are considered fiduciaries. By law, fiduciary financial advisors are required to work in your best interest and not sell products that will make them money.

Fee-only advisors may give you sticker shock at the upfront costs, but that’s because of the amount of work they do to come up with an individualized plan. After that, follow-up meetings will be brief and inexpensive.

The best time to start is now

If you are finding yourself overwhelmed at the thought of retiring, paying off debt, or how to put together a budget and follow it, then a financial advisor can help you. A fiduciary advisor will ensure that they will be working in your best interests.

It’s easy to throw away the idea of a financial advisor as a privilege solely for the wealthy, but that’s not the case. Find a fee-only advisor today so that you can take control of your finances.

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