Short Answer: Yes.
Long Answer: You have to look at one main point. This question is SO BROAD!!!
Some financial advisors will charge you based on commission (commission-based), others will charge you a fee and commission (fee-based), and some will charge only for the services they provide (fee-only). Just had to get that out of the way first.
Ignite Financial is fee-only so let's choose this route. Even in the fee-only space there are a lot of different "cost structures" for clients. Some advisors charge a retainer, others charge based on AUM, we charge a monthly subscription (kind of like you would pay for Netflix or a Yoga membership).
Charging based on AUM (short for Assets Under Management) means that a financial advisor will charge their clients fees based on how much money they are investing for their client.
Typical AUM fees are around .5-2.5% (Ignite's is .65%). Because this is their only income, since they are fee-only, to be profitable many can only take clients with investable assets of more than $500,000 (we don't have asset or income minimums).
Don't have that kind of money? Few millennials do, and that's why we built Ignite. We wanted to be financial planners for millennials, and more importantly, financial planners that millennials could actually afford. So before you ask if financial advisors are worth the money? Ask if you how much they'll cost. Some of our colleagues who also concentrate on helping millennials with financial planning charge an upfront engagement fee of $350-$1500.
The reason we decided against implementing an engagement fee was due to the technology we use. We believe in making a profit but thought adding on another fee may be overkill for our services. Our lowest service package for people who want help with investments and financial goal tracking is $25/mo plus our .65% AUM fee for any investments we manage. Not so bad huh?
There are many other financial planning firms that can help you for less than an arm and a leg, you simply have to know where to look for them. A great place to start is the XY Planning Network. This group is chock full of fee-only financial advisors who charge on a subscription retainer basis and the majority of them have reasonable AUM fees. Check them out when you have a chance, Ignite Financial is a member as well.
Do you think a financial advisor is worth $25-$325 per month? If so, schedule an introductory phone call with us by clicking HERE. Have a great weekend!