Personal Finances and Financial Advisor’s Salary
How does one know that it’s time to hire a financial advisor? The answer depends on several factors. And we’ll get to the basics in this article about financial advisor’s salary.
When to Hire a Financial Planner
People usually hire financial advisors when:
- they plan to invest,
- they got a serious inheritance,
- they got a new lucrative source of income
- they want to pay debts
- they want to make more savings.
Financial advisors help you manage a complicated financial status. They will give you advice on what to do, where to invest, how to save money and so on. Basically they help you make the right choices when it comes to decisions about your money.
Who to Choose
When hiring a personal financial advisor, you should choose a firm or an individual with lengthy experience in the field.
Start by looking for a ‘fee-only financial planner’ who are registered investment advisors who acts in their client’s best interest. In other words, they do not accept commission for product sales and avoids conflict of interest when they give their clients’ advice.
With fee-only advisors, there is no long contract between the client and advisor. Clients can leave anytime they want.
Financial Advisor’s Salary
When you hear the term financial advisor, you must automatically think they are expensive. The basic idea of needing one is because you have money in the first place.
If you expect someone to give you expert advice on how to manage your finances, you are expected to pay them a financial advisor salary.
It’s a matter of cost versus benefit. How much do you expect to make out of paying an advisor’s fee?
Fee only financial advisors salaryis anywhere between $1000 to $2000for a financial plan per client fixed price. On-going consultations with a planner means monthly payments.
That is the general idea. However, for specific purposes, say for paying debt, an advisor will charge differently than for someone who is planning an investment venture which is usually a percentage of the invested asset.
In order cases, a financial advisor’s salary is not from the client he or she advices, but from the banks and investment companiesthey recommend to clients. Commission-based, so to speak which is a conflict of interest for some.
In a Nutshell
If you want a stable and bright financial future, your decisions presently make or break that goal.
When you make money, you have so many other things to pay off like mortgage, loans, insurance, retirement, savings, emergency funds and so on. Managing personal finances is difficult, preparing for that future goal – even more so.
What we all need is a solid financial plan and financial advisors can be very helpful with that.
If you’re worried about paying for a financial advisors salary, you can just ask for a personalized financial planinstead of an on-going setup.
Paying for financial advice is an investmentin itself. Their advice might help you avoid a bad investment decision that could be disastrous.
The better decisions you make, the closer you get to your financial goal.