How to Get Cheap or Free Financial Advice - NerdWallet (2024)

FAQs

What financial advisor has the lowest fees? ›

Robo-advisors are typically the least expensive, followed by online financial planners. An in-person advisor will be the most expensive and may charge you more than 1 percent of your assets annually.

Note that your bank advisor is not a free financial advisor. Generally, there is a minimum amount that it wants you to continue to have invested there to maintain the services. You may want to work with your bank because you already have a relationship.

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The question, “Should I get a financial advisor if I'm poor?” is more relevant today than ever. Many assume financial advisors are a luxury reserved for the wealthy, but this isn't necessarily true. Even those with modest incomes can benefit from professional financial guidance.

But, if you're already working with an advisor, the simplest way to determine whether a 1% fee is reasonable may be to look at what they've helped you accomplish. For example, if they've consistently helped you to earn a 12% return in your portfolio for five years running, then 1% may be a bargain.

Many financial advisers charge based on how much money they manage on your behalf, and 1% of your total assets under management is a pretty standard fee. But psst: If you have over $1 million, a flat fee might make a lot more financial sense for you, pros say.

Before making financial or investment decisions, U.S. News recommends that you contact an investment advisor, or tax or legal professional.

Financial advisors typically charge a fixed-rate fee between $7,500 and $55,000, or a percentage-based rate of 1.02% of assets under management (AUM) for ongoing portfolio management for $1 million is assets, according to a 2023 report by Advisory HQ.

Those who use financial advisors typically get higher returns and more integrated planning, including tax management, retirement planning and estate planning. Self-investors, on the other hand, save on advisor fees and get the self-satisfaction of learning about investing and making their own decisions.

Do billionaires use financial advisors? ›

“If this is the case, the investment portfolio needs to take the operating business into consideration when decisions are being made for the investment portfolio.” Harding says billionaires seek advisors with whom they have a strong alignment and no conflicts of interest.

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Not all banks have financial advisors, while other banks may offer you free financial advice under certain circ*mstances. While most large banks offer full-service products for banking, lending, investing and insurance, other banks may not.

A financial advisor helps people manage their money and reach their financial goals. Advisors can provide a range of financial planning services, from money management and budgeting guidance to investment management.

Sometimes advisors are paid through commissions on the investments they recommend (and those commissions come out of your pocket). Cost: Varies by investment, but mutual fund sales loads generally fall between 3% and 6% of your investment. This is a one-time fee paid at the purchase or sale of the fund.

Your adviser's fees will be based on many things: what advice you need, how much time it will take, and the size of the assets involved. Advisers often charge between 1% and 2% of the asset in question (e.g. a pension pot), with lower percentages being charged for larger assets.

Generally, having between $50,000 and $500,000 of liquid assets to invest can be a good point to start looking at hiring a financial advisor. Some advisors have minimum asset thresholds. This could be a relatively low figure, like $25,000, but it could $500,000, $1 million or even more.

Schwab and CSIM are subsidiaries of The Charles Schwab Corporation. There is no advisory fee or commissions charged for Schwab Intelligent Portfolios.

Another way to pay less is to negotiate a financial advisor's fee. Be prepared to explain why you feel it is too high and why it makes sense for the advisor to take you on as a client for less than what their firm normally charges.