Get to Know Your Financial Advisor

August 03, 2023

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 are 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, some financial advisors that work with financial institutions don't charge you 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 will charge between $1,000 and $2,000 for a financial plan, after that they will charge a monthly retainer or hourly rate if you need additional guidance.

Why a Plan Matters

Research has shown that consumers who have a plan in place tend to feel more positive about their financial situation and are able to make more progress to create lasting security.

What You can Expect from Your Meeting

A financial advisor will help you make some decisions about how to move forward with your financial goals including understanding your risk tolerance as well as your investment timeframes. These factors allow them to show you how to overcome challenges that you may be dealing with, such as saving for the future or 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.