Professional Financial Planner & Adviser FAQs

How much does a financial planner cost? Do I really need a professional advisor to help manage my money? We’re answering these frequently-asked questions and more today.

How Do Financial Planners Price their Services?

Fee-based

These planners charge a set fee for their services. This could be in the form of an hourly rate, a monthly ongoing retainer, or even a flat fee for a specific project.

Percentage-based

These planners charge a percentage of your assets as their price. The most common rate is 1% per year of the money they are managing for you. The money comes straight from your assets normally, so you don’t have to remember to pay your advisor.

Advisors can charge one or the other, or even a combination of fee and commissions.

When Should I Seek Professional Financial Advice?

Generally speaking, a financial planner would be worth the cost any time you have a significant financial change in your life. You might be making more money, making less money, or preparing for a large expense – like caring for aging parents. Here are a few valid reasons for investing in a financial planner’s help.

1. You need to plan for retirement.
2. You’re getting married or divorced.
3. You just received a monetary windfall, like an inheritance or large pay raise.
4. You want to care for aging parents.
5. You don’t have a plan for your inheritance.
6. You just had a child.

Even if your situation doesn’t check any of the above boxes, that doesn’t mean you shouldn’t seek a professional. A financial planner can help in any situation that involves finances!

How Do I Find the Right Professional for Me?

Just like shopping for the right savings account, you can shop around for the right financial planner. Ask plenty of questions when meeting a planner before deciding to trust them with your investments. You should not only feel comfortable with their skills, but also their ability to educate you on your best course of action in the years to come.

Here are some example questions for a prospective candidate.

• How much do your services cost & how are you paid?
• How long have you been practicing?
• Do you have any special certifications, like the CFP designation (Certified Financial Planner)?
• What’s your average client portfolio?
• Do you have any client references?
• Are there any services you specialize in?
• How often will you evaluate my portfolio and educate me about its performance?

Key Takeaways

A professional financial planner can be an invaluable resource to you. Whether you’re working to save for retirement or trying to decide how to set up an inheritance for your children – consulting with a planner is a smart option. Just make sure to do your research and get all of these vital questions answered before handing over your money.

Have you had success working with financial planners? Let us know in the comments below!

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