There are many reasons people don’t get professional financial advice — they may worry about the cost or feel like they don’t have enough money to warrant formal planning.
If you’re thinking about getting some expert advice, here are some things to consider.
What a Financial Plan Costs
While fees vary for professional financial advisors and planners, many financial advisors working with banks or credit unions don’t charge to create a financial plan. If there are fees and expenses involved with any investing choices they might suggest, they’ll discuss them with you and help you find the ones that are right for you.
In general, fee-based advisors charge a percentage of your assets under management, an hourly fee or an annual retainer. You can also find advisors who charge a fee for creating a financial plan.
Why a Plan Matters
Research shows that people who have a plan in place feel better about their money and can make more progress to ensure they build a secure future.
What You Can Expect from Your First Meeting
A financial advisor will discuss your aspirations and help you focus on your goals. And when it comes to investing choices, they’ll discuss your risk tolerance and how long you want to invest. It’s a good time to talk about things you care about, like saving for retirement, helping your kids pay for college and protecting your family if something happens to you.
Why People Leave Financial Advisors
Some of the reasons people leave their financial advisors include their advisor’s inability to communicate effectively to help them achieve their goals, dissatisfaction with the returns on their investments and high fees.