Finance Food

Are Financial Advisors worth the money?

Are financial advisors worth the $ I would pay them? I need some advice for financial planning but not sure what to do about an advisor? Am i better off on my own?

Public Comments

1. if you have any shred of self control you are better off on your own
2. They are only good to have somebody to blame when things go wrong, we all need a hanger for our misfortunes.
3. Yes, as long as they are independent (don't try to sell you anything) and ask for a one off fee, not commission.
4. it depends on how knowledgable you are in this matter. If you don't know much about finance, I would suggest giving advisors a shot.
5. They can be.. Depends on several factors. How much money do you have ? How savvy are you ? How good is the Advisor ? How much is the advisor going to charge ?
6. Some are and some aren't. Good Financial Advisors can read the market and see where things are going and guide you in the right direction. Others don't know their heads from holes in the ground. Go with your gut, if the person you see doesn't seem to know what they're talking about, find someone else or try it on your own. And don't be afraid to ask around about the person, try to get references. For privacy sake, they might not be able to give out names, but consider it. A lot of Financial Advisors, any more, will give you a free portfolio review, and that can be a lot of good information to keep in mind.
7. I wouldn't invest with them. But hey, if they do make you money, then yes they're worth it. Most can't beat the simple running average of the s&p over a few years. Just a hint to remember. I'd start off on your own and make some safer equity picks to begin with. How about dia, spy as long term holds? Until we rebound from this mess. You could also look into mutual funds or sector etf's.
8. No. Better go solo.
9. When I was one I was worth it, but some are not. If you do not know anything about the subject then get an adviser. If you are good with money and have an idea of what you want to do then don't. I would look for a big company like metlife. Most of the advisers they have truly care about the client and are not greedy. There are always some though who are greedy. Primerica offers a free evaluation of a financial plan and they come to your home and try and help you see what you should do with your money. It's free, but they can give you some ideas.
10. The ones that are particularly valuable are ones with 20+ years of experience doing that. Essentially, you need a "gray hair" to do the job right. Someone who has been around for a while, someone who has weathered storms and has overcome them. I certainly wouldn't trust someone whose financial experience started during the upswing of the biggest economic mess we have seen in thirty-plus years. They have no experience or knowledge on which to draw, and most of them are highly trained in what I call "Salesmanship Nouveau". Which is, talking very loudly, using repetitive hand gestures, and using catch phrases like "best investment you'll ever make", "can't lose", and "always makes money".
11. If you were only your own you'd probably be out of money right now. I think everyone should hand it over to a professional.
12. You really are better off depending on the sort of money you have to invest. These are people who do this all day every day and their educated guesses are going to be a lot better than your shots in the dark.
13. no, just call the suze orman show. lol.
14. I would say yes! I am in the field of becoming a financial advisor and what we do mainly is get you set for the future. We can evaluate your current financial status and help you get from point A to point B. Most people that go it alone, end up getting only half of the job done, if any of it done. You need someone that is going to give you great advice and keep you from the pitfalls of this economy. We can help you with investments, estate planning, child planning, education, asset acquisition and a wide variety of other things. I believe if you start putting your dreams on paper that you will soon see them develop in less time than you anticipated, just make sure your advisor is working for you and not for some company that is only interested in you buying their products, that would be a different situation.
15. A LOT OF INSURANCE COMPANY'S HAVE FREE ADVISERS AVAILABLE TO YOU.
16. yes they are - get a fee only one and listen to what they say. then as you learn you can do more and more on your own. good luck
17. First, before inquiring on someones fees, see if your bank offers complimentary financial planning. Most of the larger banks already offer that service with no charge to you. I work in a bank and our financial planner for our local area has over 20 years of planning experience and meets with my customers right here at our branch or whichever branch is most convenient for them. This is particularly ideal if you already have a good banking relationship with your bank. Let someone you already trust with your money refer you to who they recommend. There's no reason to pay for something that you can get for free. If your bank doesn't offer this as a free service, then yes, an experienced financial plan is worth the money.
18. Some are, some aren't. Just like any industry in the world. Is it worth the money to take the family out for supper or cook for yourself? Completely depends on the situation. A fee only advisor will charge you a fee whether you set anything up with them or not. Typically a fee only advisor has a reserve net worth that they deal with (AKA you must have a certain net worth to work with them). These advisors are expected to provide better service than other agent becuase they charge a fee. Have you ever gone to a concert and spent $100 for a ticket and the show sucked, but the $5 band you saw last week was just as good if not better? It's the same thing. There are also advisors that do not charge for their services. While some beleive that these advisors don't offer as good of advice, this is highly debatable. In order to charge a fee you need to have proven that you are worth it....if an advisor has only been in business for a few years, they might not have built up enough of a clientelle to make the leap. Also, some advisors aren't money hungry and don't want to gouge their clients like a lawyer does for just asking a question. These advisors also don't have a reserve net worth in most cases. Fee for service vs. no fee advisor? There is no right answer....the main thing is to meet with a few advisors and find someone that can provide some solid references or testimonials from cleints they've worked with. Are either worth it? Take a gauge of your time each week. There are 168 hours in a week 56 of those are spend sleeping, 40 of those (if you're lucky) are spent working, 10 hours are spend eating meals (3/day, 7days/week, roughly 30 minutes a meal). That's 106 hours right there just working, sleeping and eating. Factor in commuting and time for your friends, family, hobbies and excerize. How much time do you have to deal with all the time to follow the markets, research the products and strategies, and then make a decision on what is your best option...Why not let someone who spends 40 hours a week or more every week dealing with all of those financial matters. Also, if you do decide to work with a professional make sure they are a broker and not a captive agent. A captive agent is someone that strictly works for one company. They will not do what is best for you. They will only do what is the best they can offer through thier particular company. A broker will have access to multiple companies and will make sure that you are truly getting the best options available on the market for your situation.