By Kia Jackson • September 16, 2022
If you think financial advisors are only for the wealthy, think again. Using a financial advisor or a similar service can benefit anyone looking to make the most of their money. But the potential fees and minimum asset requirements could make the cost of a financial advisor too steep for some households. Whether you’re looking for an affordable financial advisor or exploring other possibilities, here are ways to get the professional guidance you need to accomplish your financial goals.
Alternatives to financial advisors
Before searching for an affordable financial advisor, you may want to check out other cost-effective options that could provide the expert advice you’re looking for, including:
Financial counseling. There are many community-based and national non-profit organizations that offer free or affordable financial coaching for low-income households. The Association for Financial Counseling & Planning Education,1 for example, uses your zip code to provide a list of accredited financial counselors in your area. If you’re part of an at-risk or underserved community, the Financial Planning Association offers pro-bono financial planning for low income clients, including veterans, domestic violence survivors and those living with serious medical conditions.2
Robo-advisors. These automated financial planning services ask questions about your financial situation and goals through an online survey, then use that information to offer advice and automatically invest for you.3 Robo-advisors typically charge much less than the cost of a financial advisor. Some don’t charge management fees or require a minimum balance.
Financial education courses. Check your local community colleges and organizations for courses, seminars and workshops on financial education topics. You’d be surprised at how many free resources are out there, both in person and online. OneMain Financial offers free, 5-minute courses that cover the four components of personal finance — managing expenses, dealing with debt, building credit and increasing savings. OneMain also offers the Credit Worthy Family Resource Center to provide credit education to the whole family.
Your bank. Many banks and credit unions offer programs to help their customers manage their money wisely. Just stop by your local branch or visit their website to find out what financial planning for low-income clients they offer.
Where to find an affordable financial advisor
Affordable financial advisors do exist. But it may take a bit of research to find the one that offers the advice you’re looking for at the price that works for you. Here’s a good start to finding the right one:
Ask family and friends. A recent survey reveals that one in four Americans get financial advice from their parents and friends.4 So ask those closest to you who they use for financial advice. But just because the cost of a financial advisor works for one person, doesn’t mean it will work for another. So among all the things to look for in a financial advisor, be sure to inquire about the fees and minimum assets required before committing.
Check with your 401(k) provider. Many employer-sponsored retirement plans offer free resources for plan participants, including advice from a financial professional. Your company’s HR department may be able to help, too. Just ask if there are any free financial-planning resources available for employees.
Search online. Just like with most things you’re looking for, an internet search could turn up a number of affordable financial advisors. A search for “financial advisor for low income near me” could help you narrow down the resources available within your budget.
Contact the National Association of Personal Financial Advisors (NAPFA). Visit their website for financial advisors near you. Advisors belonging to this organization are fee-only financial advisors, meaning they do not receive commission on the investment products they recommend. That way, you can be sure the advice you’re receiving is in your best interest.
Quality financial advice is within reach
You don’t have to be wealthy to work with a financial advisor, but there are alternatives that may make more sense if the cost of a financial advisor seems out of reach. Do your research, talk to your friends and get the recommendations of others you trust to help guide you along the path to success.
1. Association for Financial Counseling & Planning Education. https://findanafc.org/
2. Financial Planning Association https://www.financialplanningassociation.org/networking/find-your-chapter
3. Investopedia. https://www.investopedia.com/terms/r/roboadvisor-roboadviser.asp
4. U.S. Bureau of Labor Statistics. https://www.bls.gov/news.release/wkyeng.t03.htm
The information in this article is provided for general education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. It is not intended to be and does not constitute financial, legal, tax or any other advice specific to you the user or anyone else. The companies and individuals (other than OneMain Financial’s sponsored partners) referred to in this message are not sponsors of, do not endorse, and are not otherwise affiliated with OneMain Financial.
FAQs
For instance, your bank or credit union may have professionals on staff who will happily consult with you on your financial questions. And if you're a member of a financially-challenged community, the Financial Planning Association (FPA) offers pro bono financial advice for those in need.
How do I find a financial advisor if I am not rich? ›
For instance, your bank or credit union may have professionals on staff who will happily consult with you on your financial questions. And if you're a member of a financially-challenged community, the Financial Planning Association (FPA) offers pro bono financial advice for those in need.
Can poor people have financial advisors? ›
The short answer is that anyone can benefit from getting professional financial advice, regardless of their net worth or income. Advisors have knowledge and experience that someone who's not a financial professional may lack.
What would three financial advisors do with $10,000? ›
Three leading wealth advisors recently shared their top ideas with Bloomberg, and I've taken them a bit further to help you put them into action.
- Idea 1: Quality stocks.
- Idea 2: Emerging markets.
- Idea 3: Corporate bonds.
Depending on the net worth advisor you choose, you generally should consider hiring an advisor when you have between $50,000 - $1,000,000, but most prefer to start working with clients when they have between $100,000 - $500,000 in liquid assets.
At what age should you hire a financial advisor? ›
But the benefits of meeting with a financial planner when you're young can make a difference. New graduates and people in their early careers should look for financial planning support as soon as they start earning an income, Hudnett Reiss tells CNBC Select.
At what level of wealth do you need a financial advisor? ›
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.
Where is the best place to get financial advice? ›
Where Can I Look to Find a Financial Advisor?
- National Association of Personal Financial Advisors (napfa.org)
- Garrett Planning Network (Garrettplanningnetwork.com)
- XY Planning Network (xyplanningnetwork.com). These advisors work specifically with next-generation investors.
- The CFP Board (cfp.net).
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.
Where should I put $10,000 right now? ›
- Pay off high-interest debt. Before you do anything, work to eliminate high-interest debt, such as credit card balances. ...
- Build an emergency fund. ...
- Open a high-yield savings account. ...
- Build a CD ladder. ...
- Get your 401(k) match. ...
- Max out your IRA. ...
- Invest through a self-directed brokerage account. ...
- Invest in a REIT.
To potentially turn $10k into $100k, consider investments in established businesses, real estate, index funds, mutual funds, dividend stocks, or cryptocurrencies. High-risk, high-reward options like cryptocurrencies and peer-to-peer lending could accelerate returns but also carry greater risks.
How much money do I need to justify a financial advisor? ›
Some traditional financial advisors have minimum investment amounts they require to work with clients. These can range from $20,000 to $500,000 or even more.
What is a red flag for a financial advisor? ›
They're Pushing Annuities or Variable Insurance Products. Pushing you towards any financial product or investment right off the bat is a red flag, and annuities are often an early sign of this. Often, advisors will try to show value early on in the conversation.
What is better than a financial advisor? ›
However, if you want support for developing a comprehensive long-term plan for your finances, you may be better off working with a financial planner. A financial planner might be the best fit if you: Want help developing a long-term financial plan.
What to avoid in a financial advisor? ›
Seven Mistakes People Make When Choosing a Financial Advisor
- Consulting with a “captive” advisor instead of an independent advisor. ...
- Hiring an individual instead of a team. ...
- Choosing an advisor who focuses on just one area of planning. ...
- Not understanding how an advisor is paid. ...
- Failing to get referrals.
Financial advisors are evolving to work with more and more diverse clients, including clients that have high needs, but low budgets. Many people are embarrassed to seek out a professional financial advisor because they do not believe they have enough assets. Sign up for stock news with our Invested newsletter.
Should I get a financial advisor if I don't have much money? ›
Bottom line. While not everyone needs a financial advisor, many people would benefit from personalized advice to help them build a strong financial future. You don't need to have a lot of wealth to take advantage of a financial advisor.
Should I get a financial advisor if I'm broke? ›
Even if you don't have a lot of money, financial advisors can be beneficial. If they're tax-savvy, they can suggest tax credits and other tax advantages you may qualify for as a low-income individual. These could include the saver's tax credit, the earned income tax credit, and more.
Can I hire someone to help me with my finances? ›
Deciding to work with a financial advisor is a personal choice. There is no set litmus test for whether you need one. If you have investable assets, personal and financial goals, or questions about your finances, you may want to hire a financial advisor.
