How Often Should I Meet With My Financial Advisor? - Spinnaker Investment Group (2024)

FAQs

How Often Should I Meet With My Financial Advisor? - Spinnaker Investment Group? ›

You should meet with your advisor at least once a year to reassess basics like budget, taxes and investment performance.

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 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.

Estimates on the return on investment from having a financial advisor vary. In a 2019 whitepaper, Vanguard assessed an “Advisor's Alpha,” or the value that a financial advisor adds to a client's portfolio, to be about a 3% net return per year, depending on a client's circ*mstances and investments.

Some firms offer two meetings within a year, and others prefer to meet clients quarterly. It is always recommended to speak clearly with your advisor about your expectations.

The 80/20 rule retirement emphasizes the importance of focusing on actions that yield the most significant results. When planning for retirement, concentrate on the 20% of your efforts that will have the greatest impact on your financial future.

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.

Most of my research has shown people saying about 1% is normal. 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 might come as a surprise, but your financial professional—whether they're a banker, planner or advisor—wants to know more about you than how much money you can invest. They can best help you achieve your goals when they know more about your job, your family and your passions.

Is a 1% wealth management fee worth it? ›

But, if you're already working with an advisor, the simplest way to determine whether a 1% fee is reasonable may be to look at what they've helped you accomplish. For example, if they've consistently helped you to earn a 12% return in your portfolio for five years running, then 1% may be a bargain.

The average fee for a financial advisor generally comes in at about 1% of the assets they are managing. Be mindful that you may still pay a higher nominal dollar as there's a higher base the percent fee is applied to.

Many financial advisers charge based on how much money they manage on your behalf, and 1% of your total assets under management is a pretty standard fee. But psst: If you have over $1 million, a flat fee might make a lot more financial sense for you, pros say.

The wealthy also trust and work with financial advisors at a far greater rate. The study found that 70% of millionaires versus 37% of the general population work with a financial advisor.

Understanding the Advisor-Client Ratio

A ratio that's too high, on the other hand, could lead to dissatisfied clients if you're not able to adequately meet all of their needs. What is a good advisor-client ratio? It depends on who you ask but a typical answer is anywhere from 50 to 150 clients per advisor.

There are Advisors who meet with clients on an Annual basis. There are Advisors who meet with clients on a Weekly basis! There is not a 'Right' answer. There is a clear bell curve with Quarterly Meetings a clear mid-point.

Any minimums in terms of investable assets, net worth or other metrics will be set by individual wealth managers and their firms. That said, a minimum of $2 million to $5 million in assets is the range where it makes sense to consider the services of a wealth management firm.

Rates for financial coaches can vary, but hourly rates of $100 to $300 are fairly common. Annual packages with a financial coach may run into the thousands of dollars, so you'll want to have specific goals in mind when you start working with a coach so that the costs don't become a financial burden.

The question, “Should I get a financial advisor if I'm poor?” is more relevant today than ever. Many assume financial advisors are a luxury reserved for the wealthy, but this isn't necessarily true. Even those with modest incomes can benefit from professional financial guidance.

Should I get a financial advisor in my 20s? Not every decision requires a financial advisor, but if you prefer to have someone to talk to about major financial decisions, or if you'd like someone to manage your assets, then an advisor may make sense for you.