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.

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.

An advisor needs to know how much money you bring in each month and each year. It will help them create a realistic plan for meeting your goals and protecting your assets. Yet, some clients don't disclose all their income sources to their advisor.

Meeting with a financial planner regularly can help you establish healthy financial habits and keep you accountable to your goals. Although, there are major life events that may prompt you to seek out a certified financial planner for guidance on how to move forward.

Key Takeaways

Financial advisors should conduct annual review meetings with their clients so that everyone is on the same page in terms of the current status, any changes, as well as future goals. An annual review should go beyond financial discussions but also cover any personal changes.

It suggests 80% of an outcome is often the result of just 20% of the effort you put into it. Often, by prioritizing the 20% of your efforts that make the biggest splash, you can reduce excess commotion.

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.

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.

On average, financial advisors charge between 0.59% and 1.18% of assets under management for their asset management. At 1%, an advisor's fee is well within the industry average. Whether that fee is too much or just right depends entirely on what you think of the advisor's services and performance.

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.

What to avoid in a financial advisor? ›

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.

Potential negatives of working with a Financial Advisor include costs/fees, quality, and potential abandonment. This can easily be a positive as much as it can be a negative. The key is to make sure you get what your pay for. The saying, “price is an issue in the absence of value” is accurate.

A financial advisor who charges a percentage based on the assets they manage may be another option. This fee can range from 0.5% to 2%. Advisors that charge a percentage usually want to work with clients with a minimum portfolio of about $100,000.

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. Having 50 clients could be enough if you're focusing on high-net-worth individuals.

They can only charge fees, and the most prevalent structure is the assets under management, or AUM, model. AUM fees are calculated as a percentage of the assets they manage and are payable as long as the advisor has a relationship with the client. These fees can be paid on a yearly, quarterly or monthly basis.

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.

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.

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.

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.