I'm Not Rich. Do I Really Need a Financial Advisor?

It’s common to think you don’t need help managing your money if, well, you don’t have much money to manage. But by working with a financial advisor, you may be more likely to meet your financial goals. Before you dismiss the idea of working with a professional, consider these points.

From protecting your home, vehicle and life with insurance to investing for your future, Farm Bureau can help.

Is a Financial Advisor Worth It?

If you’re wondering if you should use a financial professional to cover a wide range of concerns, you’ll want to factor in the cost of financial planning. 

• Some advisors charge a flat fee or hourly rate. You may pay a lot for your first few meetings, but after they’ve developed your personalized plan, your costs could go down. One benefit of hourly rates is you pay when you need help – keeping your costs lower. On the flip side, once your appointment is over, there is no ongoing monitoring or checking in.  
• Some charge a percentage of the assets they are managing for you , usually 0.5 to 1.5 percent of assets under management (AUM). That means they will make more money if they grow your investments. But if you don’t have much money to invest, you might not want to give up that percentage.

When considering which cost best fits you,  also consider the peace of mind you could get from working with a professional and possibly the time you save by not managing your finances on your own. Would that amount be worth it to you?

Ask a your agent or financial advisor for a meeting where they can explain what they offer, and how their services justify their costs. 

Do I Need a Financial Advisor?

Whether you need a financial advisor depends on your income, assets, family situation, stage of life and other factors unique to your situation. 

To decide, consider whether you could use help with financial tasks like:

• Managing your investment portfolio
• Developing retirement strategies
• Estate planning
• Saving for college
• Insurance planning
• Lowering taxes

You’ll also want to consider your financial knowledge base, and the time you have available to spend on money management. You may benefit from a financial advisor if you don’t know much about finance, you’re not interested in learning about money management and you’d prefer to spend your time on other activities.

It may also be a good idea to think about professional management if you’re reaching key decision points, like getting close to retirement age. An advisor who has worked with a lot of other people facing the same challenges and decisions may have a lot of expertise to share with you.

Get Advice from a Farm Bureau Pro

If you’re not sure whether working with a financial advisor is right for you, reach out to Farm Bureau. We can help you understand what a professional can do for you, and you can decide whether their guidance is a smart investment that could help you reach your goals.