Now that the economy is well, more and more people want to venture into the industry; it could be investing in stocks, starting their own security company, or maybe even launching their own business with the help of financial advisors. This only begs one big question: How much should you pay for financial advice? Interestingly, they actually cost far less than most people think.
Budgeting for Financial Advice Costs: Optimizing Your Finances
So let’s get straight to it: How much does financial advice cost? Fee-for-service is one way they charge you, meaning you pay for the service they provide you instead of receiving a commission. However, there are other ways where financial advisors also charge you; generally speaking, their professional fees range from 0.25% to 1% per year based on how much money they manage for you. Apart from that, some other financial advisor fees could fall under flat annual fees or hourly fees, which cost around $2,000–$7500 and $200–$400, respectively.
Don’t worry; you don’t always have to pay upfront when meeting your financial advisor on the go. Usually, they’ll conduct an introductory call wherein they introduce their product and give you an idea of their approach to how to deal with your situation. These initial meetings or introductory calls often last around 15–30 minutes, free of charge, just so they have an idea of your current financial status and future goals.
Consider alternative options.
But, of course, not everyone’s too keen on getting a financial advisor. On that note, you could try several financial options at a lower cost and even for free at times.
Robo-advisors.
Nowadays, Robo-advisors are gaining more popularity because of how convenient they are in helping you manage and track your investments. They also cost less, charging around 0.25%–0.50% a year, depending on your account balance.
Online financial services
Similar to traditional financial planners, the only difference about this service is that it’s online, so everything is done pretty much virtually, which is ideal for those who struggle to commute to different places and have hectic schedules. If you’re wondering if everything is digital with this type of service, some have a hint of human elements in them, wherein they still employ regular financial advisors when it comes to advice and guidance.
Utilize free courses on the internet.
Fortunately, everything and anything is learnable at this age, even financial management and investments! There are a lot of free resources on the web that you could use to educate yourself on the topic and know which course of action you need to take with your finances.
Ultimately, there’s no one way to deal with your financial needs because every case is different. Some may be able to manage their finances and assets better with financial advisors, while others are better attuned to learning the know-how through available learning resources on the internet. Whatever choice you make, just keep in mind these three things before finalizing what to do next: your financial needs, current budget and assets, and investment goals. These three will be the key elements in determining what financial plan works best for you. There’s no one way to do this, so don’t be afraid to explore and try a variety of options first before settling on what works best for you currently and in the long run.
