No doubt, you want to make the most of your money. Self-directed investing puts you in the driver’s seat when it comes to building a portfolio. But going it alone could mean missing out on expert advice and insights. And if you don’t have the time or interest in investing, you might’ve wondered about working with a financial advisor. But is one right for you?
When to hire a financial advisor
In some situations, it’s easy to know when to hire a pro. But in other instances, like with your finances, you could DIY or work with an advisor.
Read more: What is the difference between a robo and a financial advisor?
Our quiz can help if you’re considering whether or not to use an advisor:
When you’re ready to take the next step, get paired with an Ally Invest financial advisor. If you’re unsure if the time is right, think about your financial goals and individual circumstances, including:
Significant life events
Getting married? Having a baby? Thinking about retirement? Opening a business? Major milestones can be an opportune time to begin working with a financial advisor. That’s because these big shifts can have a significant impact on your finances. An advisor can help you map out investing strategies that align to your money goals.
Lack of experience or time
Between work, family, hobbies and spending time with friends, you have a lot of demands on your time. Planning for your financial future may fall to the bottom of your to-do list. An advisor ensures you prioritize this important task.
You may also feel overwhelmed by the topic of money management. Whether you’re a total beginner at investing or feel comfortable day trading, a financial advisor can provide an invaluable extra layer of expertise.
Before meeting with an advisor for the first time, prepare for your initial appointment by reviewing your current assets, investments and debts.
A second set of eyes
Beyond taking the reins on your financial portfolio, a financial advisor can also simply be a knowledgeable resource to bounce portfolio ideas off of or a second opinion on your financial plans. It can give you more confidence to know that an expert has signed off on what you have planned for your own future.
When a financial advisor might not be worth the cost
An advisor isn’t right for everyone — and it’s okay if one isn’t right for you now.
You’re on the fence about cost
A typical financial advisor fee is 1% of the assets under management, but it's possible to find advisory services below that threshold. With Ally Invest Personal Advice, you will pay a blended annual advisor fee of 0.75% to 0.85%. Lower advisory fees mean more dedicated to your portfolio.
There’s typically a minimum investable assets amount you need to work with a financial advisor. With Ally Invest Personal Advice, that amount is $100,000.
If you need help budgeting
For every money personality, there’s a budgeting style that works for you. If you only need a basic budget, you may be better off taking advantage of free sources instead of an advisor. Take some time to learn about different strategies and find the plan that best fits your needs.
You need to start saving
Stashing away cash for a down payment, to fund a vacation or for a rainy day is always a smart idea. You can start saving today with simple strategies — no advisor necessary.
You need tax help
Financial advisors can help with a variety of money concerns, but if you’re looking for tax help, you’re better off working with a tax professional.
Determining if a financial advisor is right for you
Deciding whether to hire a financial advisor starts with understanding what you need and what you want them to do for you. A good advisor should take the time to get to know you personally — your goals, values, the level of risk you’re willing to accept and any roadblocks that may be keeping you from fully realizing your goals. And since an advisor is your financial ally, they should be interested in your complete financial picture, including those treasured life moments and everything in between.
