Is it Worth Paying a Financial Advisor One Percent?
Updated: Feb 24, 2022
When someone wants to hire a financial advisor, they might want to know how much they should pay, especially if they've never been through this process before. This article explains the basics of it, and whether or not clients should pay that amount of money.
What Is a Financial Advisor?
Many people don't know if they should hire a financial advisor, and it's mainly because they may not know what their job entails. Overall, they're professionals that help manage money.
Financial advisors can do different things depending on people's needs. Someone could, for example, require their help to manage a specific aspect of their money. At the same time, they might want comprehensive advice to make good decisions.
Furthermore, these professionals are also experts in looking at people's financial situation and giving them the best advice. They can suggest investment options, analyze the stock market and recommend certain things, etc.
Talking to a financial advisor means the client must pay their fees. They could pay one percent, or they could pay more or less, depending on what both parties agree.
How Can They Help People?
If someone hires financial advisors in Pittsburgh, like the experts at Kelley Financial Group, their whole life can change. Managing finances is a vital aspect of living a successful adult life, which is why an expert can help turn things around, so people can start making better choices.
Financial advisors have expertise in many areas of money management, so people need to identify their needs and explain to them what they wish to achieve. Once they assess the requirements, they can help them make a plan for them to achieve their goals.
Even though the decision is up to each person, financial advisors are incredible experts, especially the ones at Kelley Financial Group. They have years of experience, and they're ready to assess people's needs and provide them with the best alternatives.
Clients may be looking for someone to help them organize their money, make a budget, plan for retirement, or suggest the best investment options. Fortunately, that's exactly what a financial advisor can do.
Sometimes, people may feel embarrassed due to their poor money-management habits. However, they should always keep in mind that financial advisors exist to help them change what they’ve done before and motivate them to foster better habits that could benefit their future.
How Do Financial Advisors Make Money?
Each financial advisor has a unique background and offers slightly different services. Even though they're all the same kind of professionals, the help they provide the clients might be different.
Additionally, financial advisors have specific schedules, so clients must take that into account when they're hiring one of these professionals.
Financial advisors make money by charging specific fees to their clients. They could, for example, ask for hourly rates, or ask for one percent, which means they get one percent of the assets they manage.
Should People Hire a Financial Advisor?
In some cases, people might say hiring a financial advisor is a waste of time and money since managing their assets is something they can do themselves. Nonetheless, once they notice that it's much harder than it appears to be, they start looking for professionals to help them.
A financial advisor is an immensely important expert to hire, especially if someone wants to achieve their financial goals.
If the advisor is asking for a one percent fee, clients might wonder if hiring them is worth it. Overall, getting help from these experts is always a fantastic idea, which is why people should evaluate their needs and budget options.
Even so, some people might not agree or may not be able to afford a one percent fee, which is why they should try to negotiate with the advisor to see if they have other options available. If the client is interested in improving their financial life, they could come to an agreement that benefits all parties.
Financial advice is essential, especially when someone wants to improve their money-management skills or achieve specific goals. In some cases, people might not think paying a one percent fee is worth it but having a professional by their side is one of the best choices they could make.