At What Net Worth Should You Hire a Financial Advisor?
Managing your finances can become overwhelming, especially when you have a lot of money saved or when you find yourself in a complicated financial situation. Hiring a financial advisor can settle your nerves and put you back on track with a financial plan.
A net worth advisor is the best option for those who are considered high net worth individuals. People in this category typically have at least $1 million in liquid assets. However, you don’t necessarily need to have that much to hire a financial advisor (but more on that later).
In this blog we will discuss what a financial advisor can do for you, whether you need one, and the benefits of hiring one.
What Does a Financial Advisor Do?
A financial advisor acts as a guide on your financial journey. Think about traveling to a brand new city on vacation. You have two options for exploring that city: you can explore on your own or you can pay for a guided tour. While both options work, a guided tour will probably teach you things or show you places that you might not have come across yourself. A financial advisor can show you the parts of financing that you might not have considered on your own.
More specifically, financial advisors help with:
- Inheritance and estate planning
- Long-term care planning
- Life insurance
- Business investments
- Planning for your future (saving for retirement, a wedding, your child’s college tuition, etc.)
- Creating strategies to increase your wealth long-term
Financial advisors do a lot. At what point should you hire a financial advisor, though? How much money should you have before hiring a financial advisor? You should consider a few points when making this decision.
Should I Use a Financial Advisor or Do It Myself?
Whether you should hire a financial advisor depends on how much money and how complicated your financial situation is. If you fall into one of the categories below, you should consider hiring a financial advisor:
- You have a lot of money saved. This amount will vary depending on who you hire, but typically you should have $100,000 in assets before you hire one. However, this number can be anywhere from $50,000-$1,000,000. At Delta Wealth Advisors, we typically consider high worth individuals anyone who has at least $10,000,000 in assets. However, we also have a Trailblazer Path for those who have less than $1 million but have a bright future and need help with more than retirement.
- You have a complex financial situation. This can be anyone who owns a business or who has made several investments. Your situation might also become complex if you receive a large inheritance or if you decide to bump up your retirement funds goal.
Benefits of Hiring a Financial Advisor
Most people hire a financial advisor because the financial advisor eases the burden of managing your finances. However, there are several other benefits that financial advisors bring. They are:
- Taking the emotion out of investing. Some people make investments based on their emotions instead of what the market says. Financial advisors can verify that the investments you make are sound.
- Making a plan. Working towards a goal without a set plan can make achieving the goal seem unattainable. A financial advisor will discuss what you need to do to get there. And if your goals change, your financial advisor will assist you in coming up with a new plan.
- Avoiding tax mistakes. If you own a business, have lots of investments, or have complicated taxes for another reason, a financial advisor can make sure you file them correctly so you’re not penalized for the mistake later.
- Determining what each type of investment does. Different types of investments have different benefits for your finances. A financial advisor can teach you about them so you have a clear understanding of where you should invest and why. To learn more about the different types, Delta Wealth Advisors breaks them down a bit here.
Hire a Financial Advisor From Delta Wealth Advisors
If you decide that you do want to hire a financial advisor, where can you find some of the best financial advisors in the United States? Right here at Delta Wealth Advisors. When it comes to growing your net worth, we think you should look beyond stocks and bonds. We will help you find the investment strategy that works the best for you using our evidence-based approach and continuously monitoring your investments.Whether you already have a high net worth or on your way to significantly increasing your net worth, we’re here to help you. Ready to learn more? Find out if we’re the right fit for you by scheduling a call with us.