Boca Raton, FL Financial Advisor Office (2024)

FAQs

Is it a good idea to talk to a financial advisor? ›

A financial advisor can help you hone in on your goals and map out a way to achieve them. This can be anything from starting to invest, buying real estate, saving for an emergency or retirement, or something else.

You should meet with your advisor at least once a year to reassess basics like budget, taxes and investment performance. This is the time to discuss whether you feel you are on the right track, and if there is something you could be doing better to increase your net worth in the coming 12 months.

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. Why? Because their fees need to cover their time and expertise, and managing smaller portfolios may not be cost-effective for them.

A financial advisor is worth paying for if they provide help you need, whether because you don't have the time or financial acumen or you simply don't want to deal with your finances. An advisor may be especially valuable if you have complicated finances that would benefit from professional help.

Answer: From a regulatory perspective, it's usually prohibited to ever charge more than 2%, so it's common to see fees range from as low as 0.25% all the way up to 2%, says certified financial planner Taylor Jessee at Impact Financial.

It's important to reveal “personal issues, no matter how potentially embarrassing, if they concern money,” says John Stoj, a financial advisor at Verbatim Financial in Atlanta.

Consider hiring an advisor if your finances are complex or you experience a major life event. Choose an advisor you feel comfortable with and whose expertise aligns with your needs.

What Percentage of Financial Advisors are Successful? 80-90% of financial advisors fail and close their firm within the first three years of business. This means only 10-20% of financial advisors are ultimately successful.

Meanwhile, you must have a deep understanding of the markets, analytical skills and training, and a passion for finance. Soft skills are as critical as hard skills, like investing skills and market timing. Successful advisors are more than good with numbers.

While the typical annual financial advisor fee is thought to be 1%, according to a 2023 study by Advisory HQ, the average financial advisor fee is 0.59% to 1.18% per year. However, rates typically decrease the more money you invest.

What is the difference between a financial planner and a financial advisor? ›

Generally speaking, financial planners address and keep tabs on multiple areas of their clients' finances. They develop long-term, strategic plans in these areas and update them on a regular basis over the years. Financial advisors tend to focus on specific transactions and short-term situations.

This is a common fee structure where advisors charge a percentage of the total assets they manage for you. It ranges from 0.5% to 2%, depending on the total assets and the level of service provided. These fees cover continuous portfolio management, regular rebalancing, and sometimes ongoing financial planning.

However, there are also potential downsides to consider, such as costs and fees, quality of service, and the risk of abandonment. To make the most of a relationship with a financial advisor, it is important to do due diligence in the vetting process and stay invested in the relationship.

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.

A financial advisor can help you identify and achieve your financial goals. Consider hiring an advisor if your finances are complex or you experience a major life event. Choose an advisor you feel comfortable with and whose expertise aligns with your needs.

Long before you begin house hunting, an advisor can offer help as you figure out how much debt you can take on, how much money to put toward a down payment and how you'll be able to keep your other important financial goals on track.

A good advisor can get you to plan for what you really want and then help you realize those goals – what Henderson calls giving clients “life clarity.” “An advisor can help people discover the values that are meaningful to them and then help them use the money to get there,” he says.