Do I need a financial advisor?

rp_100.jpgI’m off today (and tomorrow), so this will be a nice, long weekend. I’m not sure what I’m doing today, probably just going to bum around.  And I’m sure most of you noticed, but I changed my blog up a bit, how does it look? I’m still making changes, but I got tired last night and stopped. Let me know about any opinions you have! As I always say, any comments, good or bad, are always welcome.

Anyways, to get to the topic of this post, I’ve been thinking about getting a financial adviser. I recently received a pretty big bonus, and I also just realized that I got an extra $630 as well (I forgot to read a page that I got which explained my bonus), so my bonus amount is actually around $6,730. Also, I’m getting a big tax refund this year, so that will be another windfall in another couple of months.

So because of all of this money that’s pretty much landing in my lap, I would like to start investing more, as I have barely done this (because I have been paying down debts), and also to do other things with this money, but I’m not really sure what I should do.

Some of you are probably wondering, “Aren’t you in the financial services industry?” Yes I am, but I don’t handle these type of investments, just mainly large portfolios (lots of money and/or companies that people own). We don’t actually advise on how you should invest or spend money. It’s tough to explain what I do, one day I will make a post on it.

Anyways, I don’t have the slightest clue as to where to start with getting an adviser. I plan on eventually just doing all of this on my own, but for the beginning, I’d like to get at least some expert help to help me in a direction.

I do know that most of them get paid commission based on certain things though, so I think this is swaying my decision. I am not good with investing, I’ve thought about reading books, but honestly, I just don’t have a lot of time right now.

I know that financial advisers are trained and have great expertise with financial matters.  They can help you with investing, retirement and anything financial related.

Where do I start though? Can anyone tell me what exact type of things they tend to help with?

Do you have an adviser? Or have you thought about it?


  1. says

    We used a fee only financial planner to run different scenarios for us to ensure we were on the right track with do it yourself investing. Others in my family have financial advisors and a cousin is one. Some have a lot of training; some don't. The main thing is that there approach to investing will vary drastically and you need to find one who matches yours. Have you maxed out your retirement accounts? Any bills to pay off? Emergency fund fully funded? If yes to all then I'd invest otherwise I'd take care of those first.

  2. says

    We don't use an advisor. In today's world I think basic investing is easily DIY. And if you have accounts with some of the larger financial companies like Schwab or Fidelity you can get free consultations. With age based funds and commission-free ETFs and index funds I'm positive 99% of folks can reach their investment goals using free online calculators and tools that offer basic asset allocations. Now, for complex tax issues/advice getting a professional is well worth the money spent.

  3. Little Lamb says

    I don't know a schmuck about investing so if I were to consider hiring an adviser the one thing that would have the biggest influence on me would be word of mouth. I'd ask around from people that I trust, mentors, friends, etc and see who they use. Like the new look. I like to change things up myself and was trying to do that last night but I am so challenged when it comes to this. What program do you use to create your header?

  4. Daisy says

    I don't have an adviser, and I'm not sure if I'd get one. I don't have the money to invest right now, but I suppose if I did, I would. I don't know anything about how to invest money, but knowing me, I'd probably try to read up on it before doing anything

  5. Live Simply- Live We says

    We have an advisor and he is so helpful. We started serious investing this year and could not have done it without him.

  6. Bryallen says

    I've heard it is best to find a company that pays advisors a salary. They are more likely to give you impartial advice than those that are only in it for the commission.

  7. says

    I have a few sources. Actually, I rely on input from two financial advisers and my accountant. If all three agree, then I know what I am doing is OK. And it serves as a check/balance.Granted I'm not an adviser, but I have had to roll more than a couple of 401(k)s over. One fund/investment company we have stock in and that are highly respected and recommended by all three, are American Funds. We like their Fundamental Investors fund. Their stuff is not highly advertised and they put more effort into managing the funds than promoting it. We used that fund to save money which paid for the down payment of our current house. Once we were settled and could save some money, we opened another account with the same thing. This year we branched into a different one of their funds. I have a specific guy I deal with for that stuff and another one I deal with for a different fund. Funny thing is, they know each other! But as far as that goes, all three of my "guys" respect each other so I know I can trust them all.Pick someone to advise you who has worked with people you trust. I am not using a fee-only adviser. My advisers do well if I do well, and that can also be a powerful motivator. There is a flip-side the to fee-only approach and this is it.The man whom I buy my American Funds from is a buddy of my insurance agent. I have a Morningstar account through someone who used to handle the 401(k) for my employer before we were sold. I recommend you query people you know in order to find someone you can trust and with whom you can be honest.

  8. Free!~ says

    I think you should pay the car down or off. Then use the extra monthly income to pay down your other debt. You will be saving allot of interest. Once the other debts are paid down then you should think about investing. As far as financial advisers…I'm not sure. I used to nanny for a financial adviser that was part of a firm. Maybe word of mouth with a local person would be best. Good luck!

  9. says

    If you read I Will Teach You to Be Rich by Ramit Sethi, he talks about how all you need is a Roth IRA and you can just invest in a target retirement fund. I really like him and his advice, if you have time definitely check it out. He talks about the cons of advisors and investing in stocks. However I do invest in a large-cap health sciences fund haha. It just all depends on you though. Keep us updated!

  10. says

    If you're worried about commissions eating into your returns (and rightfully so), you can look into getting a fee-only financial planner. Some of them only work with very large accounts ($500,000+), but there are still quite a that will work with people who are starting out.

  11. says

    We don't have a financial advisor. Just be very careful with ones that work on commission. The products that they will recommend are often those that they get the most commission from.

  12. says

    I've heard that sometimes it is good to get an advisor you just have to be careful which one you choose – kinda get to know the person if you will? They are going to have access to your funds. But, they can probably provide suggestions and insight you might not have known otherwise. So, I'd say it's definitely something to carefully consider. My mom has one and has been very pleased. Good Luck, -Katie

  13. says

    I'm not an advisor but I am a big fan of Dave Ramsey's so I follow his baby steps religiously because they make sense. If you expect a big tax wallup from your extra income this year, you may want to put it in a Roth IRA (unless you make over $120k a year which is the cut off for funding a Roth) but then you won't be able to use the money until you retire without penalties. These are the people Dave Ramsey recommends as advisors in your area

  14. says

    My husband and I have talked about this very thing!!! We know we should start putting more money away- investment style. So we are starting with our local CPA who offers initial financial planning advice. Hopefully he can steer us in the right direction!

  15. says

    @Little Lamb, I just used Picnik and that's it. Thanks! I'm glad you like it. It was easy.And thanks everyone for your financial adviser advice. I'm going to look at the websites that everyone posted in their comments now. When we finally decide what we will do, I'll update everyone.

  16. Little Lamb says

    Oh perfect, thanks. That's what I've been using. Guess I just need to play around a bit more. Good luck with the research.

  17. says

    Congrats on the larger bonus! That's awesome :)I have never used a financial advisor – I just kind of read things on the internet and figured stuff out. I definitely think that a financial advisor could have been less stressful of a way to start out though. I would recommend finding someone who is fee-only and can help you come up with a plan that you can implement yourself.

  18. says

    I can understand what you are thinking when you said you would like a little advice starting out and then handle everything yourself.For this I also recommend a fee based adviser.I'm sure if you reach out to these two bloggers they may be able to offer tips as they have both recently took a go at trying a financial adviser.Krystal and J. Money

  19. Anonymous says

    I am considerably older than you but this is my experience. We use a financial advisor who was recommended to us by a friend and we have been pleased. We also saved as much as we could and did not have any credit card debt. We bought less house than we were told we could afford (encouraged to buy) by the realtor. I was able to take an early retirement package offered by my company 2 years ago and my husband and I are planning to travel.

  20. Good Cents Savings says

    My dad gave me what I thought was pretty good advice in this area – ask a very successful friend, boss, relative, or mentor if they are happy with their financial advisor and if they would arrange an introduction. They might take you on even if you don't have tons of $ to invest as a favor to their existing client and you'll be getting the same info as the high rollers. I haven't taken this advice myself yet but I thought it was a pretty interesting idea! (And like most of the other commenters I would also go with a fee only financial planner.)

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge