I believe we will go up a tax bracket soon – are expecting as well – need to do some financial planning – wondering if advisors are worth it? Any opnions appreciated!
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How much do financial advisors charge and are they worth it?
#1 by Robert F on May 11th, 2010
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financial advisors are usually insurance salespeople. No they are not worth it.
#2 by inevitable2277 on May 11th, 2010
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I work for a private financial advisor office. they either charge a flat fee for the year (which is negotiable depending on what your needs are) or a % at the end of each year.
Our office is unique in the fact that we have a CFP, CPA, a RN who deals with insurance and just took the CFP test and an Attorney for 1 fee.
Depending on your needs…theyre worth it
#3 by lilkin_kingboy on May 11th, 2010
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I work for a private financial advisor office. they either charge a flat fee for the year (which is negotiable depending on what your needs are) or a % at the end of each year.
Our office is unique in the fact that we have a CFP, CPA, a RN who deals with insurance and just took the CFP test and an Attorney for 1 fee.
Depending on your needs…theyre worth it
#4 by dale on May 11th, 2010
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It depends on the situation. Some advisors charge commissions on the products that they sell you. Insurance, stocks, bonds, mutual funds etc. There are also “fee only” advisors. These professionals help you chart a financial course, implement the plan and the provide follow up. They tell you up front what the fee will be and that’s it. Are they worth it? If they help you to reach your goals, then yes, definitely worth it.
#5 by chh945s on May 11th, 2010
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I work for a private financial advisor office. they either charge a flat fee for the year (which is negotiable depending on what your needs are) or a % at the end of each year.
Our office is unique in the fact that we have a CFP, CPA, a RN who deals with insurance and just took the CFP test and an Attorney for 1 fee.
Depending on your needs…theyre worth it
#6 by kcincon on May 11th, 2010
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Think of a financial advisor as a college professor. A good one is there to teach you and show you all your options in a way that does not sell you any one particular product. Make sure they have credentials like CFP or CFA. Also find one that is a good fit for you, one you can develop a rapport with.
Is the cost worth it? I’d say if the above is true, then yes – even more value if you are not very educated in general about finances. Sometimes if you are, then another point of view can be worth it as well.
#7 by Stacey on May 11th, 2010
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You are obviously on the right track financially if you are asking this question. The ultimate decision as to whether it is time to hire a financial advisor comes when you and your family decide that the time and/or knowledge level required to reach your financial goals is greater than the time and/or knowledge you have to dedicate to this. It is incredibly important to have a good financial plan – one that fits with your family’s goals.
So, if you are at a point where you need greater knowledge or help managing your financial future, then start interviewing advisors. A good financial advisor is worth the money only if you take the time to pick the advisor that is right for your family. First, you must know what your financial and family goals are for the immediate future and long-term.
Do a search on Yahoo for “how to choose a financial advisor.” This search brings up a list of sites that will give you the questions you need to be asking of every advisor you interview.
And, don’t forget to go with your intuition. If an advisor sounds sketchy or wants to do something with your money that you don’t want them to do – go to someone else.
Good luck on your search and with your new addition to the family!
#8 by financialguru on May 11th, 2010
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Financial professionals are worth it! Good advisors are life consultants, and help you devise a unique plan to achieve any of your life goals. If they don’t have an answer for you, they know somone who does, i.e. CPA, JD, etc…
The typically are paid by commission and fees. Mutual fund companies, insurance companies, and corporations pay them to sell the products. They also likely will get an asset based fee paid to them, usually .2%-1.5% of the total value of your account. From my experience with my advisor he has my interests ahead of his, and the value of my account has benefited. As a result of his good recommendations and his knowledge about me and my goals, I am confident about getting to where I want to be. I have absolutely no problem in paying him for it, either. He deserves it.
When interviewing for an advisor if they don’t want to tell you how they get paid, turn around and run away! I also believe they should be more interested in what your dreams and goals are rather than how much money you have.
Ask relatives, co-workers, friends, neighbors who they use as an advisor. That is how I met mine, and I am very grateful!
Good luck!
#9 by mslider2 on May 11th, 2010
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I cant help but notice that 3 (so far) answers are identical….
Only you can decide if a financial advisor would be worth it.
Here are some free ideas you can try first.
Look at your last tax return and see what you will be paying based on what you think your income will go up without making any changes. This way you will have a base idea on how much more and when the advisor quotes you a price/percentage you will know if it will save you any money to purchase their services.
Is your 401K, IRA and other tax free deductions maxed out?
These can give you good deductions to lower your taxable income down for less taxes.
You can also go to
http://www.irs.gov
and ask them any questions by email about your new income.
The irs provides free tax help all year long, not just at tax time.
Also I would recommend if you do get a financial advisor (since you are mainly interested in the tax savings) get one from a reputable tax company such as H/R Block.
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