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  • Writer's pictureTroné Fossum

How Much Money Should You Have to See a Financial Advisor?

Updated: Jun 12

“How Much Do I Need to Have to See a Financial Advisor?”

This is a common question. But the truth is that you don't need a specific amount of money to see a financial advisor

No matter how much money you have, a financial advisor can help guide you to make intelligent decisions with your money so that you pursue your financial goals. 

However, the greater your investable assets, the more value you can typically get from your financial advisor and wealth management team. It’s not uncommon for financial advisors to have an account minimum. This account minimum is logical for both you and the firm. 

how big is your nest egg?
How big is your nest egg? If it's more than $1M in investable assets, it may be time to seek professional advice.

How Big Is Your Nest Egg?

If your investable assets are under $250,000, it’s likely best to seek help from a financial planner and invest on your own until you build up a larger nest egg.

The simple reason is that you get more value from your advisory firm as your assets grow and your financial situation becomes more complex. 

Think for a moment about a babysitter. Imagine you have just one child. You’re going to get value from that babysitter. And you’ll likely be happy that you hired them.

But now, imagine you have ten kids.

How much more value will you get from that babysitter? It’s not so different when working with an advisory firm. 

The more you have, the more guidance and assistance you will need. In addition, the greater your assets, the greater the complexity. This is where having an excellent fiduciary financial advisor becomes invaluable. 

“How Much Do I Need to Have to See a Financial Advisor?”

When to Seek Guidance from a Financial Advisor

Once you have investable assets over $1M, it’s definitely time to start speaking with advisory firms to see how they can help you optimize your investments.

It's also important to ensure you’re not overpaying your taxes or missing out on other wealth-planning opportunities. 

If you’re 10-15 years away from retirement and are unsure whether you have a financial plan and investment portfolio that will allow you to maintain your current lifestyle once you’re no longer working, seeking the guidance of a financial advisor is a wise choice. 

Financial Advisors Are for Everyone

Think of a financial advisor as a personal trainer for your finances. 

Just as a trainer helps you work out effectively no matter your fitness level, a financial advisor helps you manage your money, whether you're just starting to save or have a sizable amount invested and are looking to retire in the next few years.

When to See a Financial Advisor

1. Early Stages 

If you're just beginning to build your wealth, an advisor can create a financial plan for you and ensure that you’re contributing a sufficient sum to your retirement account. 

2. Building Wealth 

As you accumulate more assets, an advisor can help you build a robust portfolio, make smart decisions about insurance, help you with tax planning so you don’t overpay your taxes, set up college funds for your kids, and guide you through the essentials of estate planning and long-term care planning.

3. Nearing Retirement 

If retirement is on the horizon, a financial advisor is invaluable. They can help you figure out how to change your investment strategy to create income streams during retirement, how much you'll need to live comfortably, and how to plan for potential healthcare costs.

When to See a Financial Advisor:

Types of Financial Advisors

Financial advisors aren't one-size-fits-all. 

Depending on your financial situation, it may be best to work with one type of financial advisor over another. 

1) Robo-Advisors 

These are digital platforms that manage your investments using algorithms. They are great for beginners because they often have very low starting requirements and fees.

2) Financial Planners 

Financial planners help with a wide range of services, including budgeting and planning for future expenses. They often charge a flat fee or hourly rate, which can be a good option if you're starting out or have specific financial questions.

3) Wealth Managers 

These advisors usually work with people who have greater assets. They can offer more personalized financial advice and services like estate planning and tax planning. 

4) Fiduciaries

Look for designations that indicate that your financial planner, financial advisor, or wealth manager is a fiduciary. CFPs, AIFs, and AIFAs are fiduciaries, which means that they must always act in your best interest. (+)  

Final Thoughts

You can seek advice from a financial advisor or financial planner at any stage in your wealth-building process. 

Whether you're just starting out or already well on your way, a financial advisor can provide valuable guidance and help you navigate your financial journey more effectively. So, if you're thinking about how to handle your money better, it might be time to consult a financial advisor.

Summary of Key Points

  • Early Financial Guidance - Advisors and planners can help set foundational strategies for those just starting out, teaching budgeting, saving, and basic investing.

  • Wealth Building - For those who have started accumulating wealth, advisors provide insights on more complex investment opportunities and tax strategies.

  • Retirement Planning - Advisors are crucial for individuals approaching retirement, offering strategies on how to optimize savings and manage expenses post-retirement.

  • Variety of Services - There are different types of financial advisors, from robo-advisors to wealth managers, catering to various financial situations and needs.

Speak with a fiduciary advisor

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This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.



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