When Do I Need A Financial Advisor?

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[girlmom]

My father/stepmother are multi millionaires and so they have one, and have had one for over 20 years. I now have one as my parents are starting to hand my inheritance over to me. I think it depends on the situation. Not everyone needs one. My mothers has kept her from going broke as she’s horrible with managing money (she’s bipolar/manic depressive). He gives her very little to live on a month, which has been fantastic, as well as has helped her money to grow substantially by investing it. My heart is happy knowing my 71 year old mother will be financially okay for the rest of her life because someone does control it other than her.

[adamdejesus]

He says it right at @1:25 -- financial advisors are there to sell you funds. They give great advice and it's worthwhile to talk to them but they are not social workers, they are salespeople.

[jwise]

Financial managers are not needed by the vast majority of people. Managed funds are garbage. Get a tax guy, especially if you're investing in real estate, etc.

[austinbrooks]

I almost started using a financial advisor, but it really just seemed like he wanted to sell my wife and I on life insurance policies. I guess that’s how he made his money. Whole thing seemed really schemey.

[timkrehbiel]

You need one when a potential mistake costs you more than the fees an advisor charges. For example, if you have $10k in assets and you make a 10% mistake, that's $1000 you lost. Probably not a huge deal, and it's still cheaper than hiring an advisor, so you don't need one. When you have $1M in assets and you make a 10% mistake, that's $100k down the drain. An advisor would have paid for themselves several times over in that situation.

[abiodunaderibigbe]

I read body language a lot and I think that Dave's body language (not looking straight into the camera when responding) suggests that he knows that caller doesn't need a financial advisor, but Dave must market his 'product' like any entreprenuer would do. I hope the caller got the point.

[trent]

"They make their money based on what you invest with them."

Yeah, and that money cost you a lot over the long run because it is money you aren't re-investing.

[mdlwanders]

Agree with most of Dave's advice, especially on budgeting and living debt-free, but there are a LOT of people who really don't need a financial advisor. It's a shame he doesn't recommend fee-for service advisors: pay for advice when you need it -- like a doctor, attorney, or therapist -- instead of commission salespeople.

[orphanedhanyou]

Jaffe Tilchin in Tampa >> run away, they just sell insurance and after you decline stop talking to you. Wouldn't just help us figure out non employer investment options.

[TubeDeviant]

I don't think that's the answer he was looking for. Maybe he's wondering at what dollar amount should he be talking to a financial advisor..?

[colinhiggins]

You do NOT need a financial advisor unless you are worth tens if millions and want to get involved in alternative investments. The average investor can open a brokerage account, purchase ETFs, or open a 529 in like one day. An advisor will simply stick you in high-cost mutual funds and grab 1.5% (or more) of your portfolio every year, costing you hundreds if thousands if dollars over a long period

[edhcb]

You DO NOT need a “smartvestor pro” to help you set up a 529 for your kids or to open a simple brokerage account and start making trades outside of your 401k.

[mattatwar]

Go with a fee only No need for expensive commissions

[mccoyji]

Nope....unless u want to share the wealth. Think of it as charity. Give !! Like Dave does, like nobody else.

[marcusarelius]

Thanks Dave. You didn't answer the question.

[DEBTFREEMIKE]

Does anyone know what the investment max is per year for under age 50?

[adamseidel]

Net worth isn’t high or diverse enough yet for it to be worthwhile… yet. A good one may not even take you on at this point.

[mossgeorge]

If you listen to Dave Ramsey and you have a understanding of financial information. You don't really need one. Now you do need a stock broker.

[ryebread]

Folks, Dave is a "brand" guy. His brand over everything. His brand includes smartvestor pro... just saying let the reader use discernment

[fhuber]

When you don't know how to properly manage your money.

That might be a minimum wage worker living at the YMCA or a brain surgeon making $1.5 million a year.