Well, well, well… It seems I finally got someone riled up enough to respond to me. Got an email today (feel free to join in @ [email protected]) who said that I was being “unfair” to one of their precious gurus and they didn’t find my comments in regards to their posts to be entertaining. Well I hate to bust your bubble, if you don’t find their posts entertaining then you are up the creek with a hole in your boat.
So other day I promised some information on financial advisors, so let’s get to it. Got some great information of of the smartasset site that I’d like to share. For many, working with a financial advisor may seem like something for the super rich. But you don’t need to be wealthy to potentially benefit from financial advice. A financial advisor could help you best determine if you are on track to meet your long-term financial goals. This expert could work to help you potentially save more, reduce your debt and invest more wisely.
How Much Money Should You Have Before Hiring a Financial Advisor?
Investment managers, financial consultants, financial planners and even robo-advisors are all considered financial advisors. As a result, minimum thresholds vary widely.
For example, an article from Delta Wealth Advisors notes that depending on the net worth advisor you choose, you should consider hiring a financial advisor when you have between $50,000 – $1,000,000, but indicates that between $100,000 – $500,000 in liquid assets is the level at which an advisor’s benefits potentially outweigh the costs.
Some advisors may have minimum asset thresholds and could vary by advisor or firm. This could be a relatively low figure, like $25,000, but it could also be $500,000, $1 million or more. However, people with less than $100,000 in assets could potentially benefit from hiring a financial advisor and getting guidance on how to potentially grow their wealth.
How Much Do Financial Advisors Cost?
For many, the excuse for not working with a financial advisor is the false assumption that they can’t afford it. In actuality, the fees financial advisors charge could potentially be less than most people think, and the insights they add could potentially surpass an advisor’s cost.
There are two types of financial advisors: fee-only and commission-based. Fee-only financial advisors are preferable, especially fiduciaries, who are obligated by law to act in your best interest and disclose any potential conflicts of interest. Commission-based advisors, on the other hand, are paid based on the product referrals and sales they make. The truth is, financial advisors often charge a percentage fee for Assets Under Management (AUM) of between 0.59 – 1.18%. A 2021 AdvisoryHQ study found that the average AUM fee for a $50,000 account was about 1.18% or $590.
Common Fee Types & Costs
- Percentage of Assets Under Management: 0.59% – 1.18% per year
- Fixed Fees: $7,500 for portfolios under $500K
- Hourly Fees: $120 – $300 per hour
The figures above are examples only and used to illustrate what typical fees for financial advisors and their structure looks like. Please carefully review fee structures with your investment advisor and review your advisor’s form ADV and CRS.
How to Find a Financial Advisor
Consulting a fiduciary financial advisor could help you determine a plan that factors your assets and taxes into your overall retirement and estate-planning goals. Fiduciaries are obligated by law to act in your best interest and any potential conflicts of interest must be disclosed. Yet knowing how to find a vetted fiduciary advisor is, for many, the most confusing task of all. Common Google searches related to the topic reveal a desperate search for direction. “Fiduciary financial advisors near me,” “best fiduciary financial advisor,” and “financial investment advisors near me” are searched hundreds of times per day. (percentages and fees are are averages and should be discussed with your advisor candidates)
Key things to understand, is what’s best for you. This is what you should be using the time for. If you’re counting on something of of the gurus has to say, it’s wasted time and opportunity.
Well let me step on a few more toes… 7-25-2024 Pimpy –If you’d been holding on to your dinars for at least 10 years you have more than doubled your money. That’s not including any change to the exchange rate, because if the exchange rate changes, then you get that back once you cash out. In other words if you tell the bank I’d like to get it in USD, they go, okay, no problem. And please transfer that to my American account. If I can get 10% on it annually I’ll take it. So in 2013-2014, the value of the dinar was 1146 to 1161 to the USD. Today that value is about 1310, so if you have 1M dinar in 2014 at the highest value of 1161, that’s $861.33. Today, that same 1M is worth $761.36. So with his 5M dinar he says he owns, that gives him a $500 increase. Unfortunately, that’s for a 10 year investment. So you spent $4363 dollars on your dinar back then, today after a 4% annual return, you would have made $2095.31. So if you got into the dinar for a 9% return AFTER 10 years, and you’re happy about it, you sir, would never handle my money! PS, you haven’t doubled your money, BUT it is worth more than 10 years ago. This is why you are not in a scam.
7-25-2024 Jeff -Everything is pointing to…August. I really feel that’s when the rate is changing…Everything seems to be hovered and centered around the nucleus of August being their accession to the World Trade. Somewhere around mid-August.
7-25-2024 Frank26 FIREFLY: August is looking good…a lot is coming to a point in August.
Well circle the wagons, cause here comes the circle intel. Hmm, seems several months ago, I said I wasn’t looking for anything until September and all those gurus that were on the “it can’t get out of April, May, June or July” are already pointing down the road. Guess what, if in a couple weeks it hasn’t happened, that September timeline will start looking good. I want this more than anyone, there are still things we need to see or hear about for me to pop the champagne and turn in the resignation letter. Pffft, who am I kidding, there won’t be any resignation letters until I walk out of the bank with a deposit slip and a notification of when the funds will be ACTUALLY in my account. Keep those emails coming!
BWM