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Different financial advisors charge different fee structures, and many specialize in working with lower- or higher-net worth clients.
As you explore hiring a financial planner or advisor, keep the following pros and cons in mind.
Id say the median net worth is more like $1 million.
Jay Zigmont, a Certified Financial Planner (CFP), specializes further.
AtChildfree Wealth, we work with childfree people with a higher net worth.
Our clients tend to average more than a million.
We work with everyone from those just starting on their financial journey to high net worth individuals.
When Should You Hire a Financial Advisor?
Despite these averages starting with $1 million at some firms, remember that theyre just that: averages.
Half of the clients likely havesix-figure net worths.
That helps ensure that they are saving on taxes and makingwise investment choices.
However, low net-worth clients (i.e.
Youll pay little in investment advisory fees, so youre going to get almost nothing in service.
For those withsimpler financial situationsor smaller portfolios typically below this thresholda robo-advisor might be a more cost-effective solution.
More on that shortly.
What other pros and cons should you consider before hiring an advisor?
However, the cons include higher fees and potentially minimum asset requirements.
They question whether the benefits outweigh the costs.
you’re able to pay a flat fee for periodic advice and help planning out long-term financial goals.
We offer aChildfree Wealth Check-upfor $500, for example.
In our check-up we gather a lot of information about your current situation, life, and goals.
Willardson notes that Having anexperienced wealth advisoris important at any income level.
Thats a theme that Zigmont emphasized as well.
Your money mindset and behaviors tend to have a larger impact on your financial success than the numbers themselves.
You dont need a seven-figure net worth to get expert help.
You just need a few hundred dollars to pay for a few hours of an experts time.
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