By Kia Jackson • September 16, 2022
If you think financial advisors are only for the wealthy, think again. Using a financial advisor or a similar service can benefit anyone looking to make the most of their money. But the potential fees and minimum asset requirements could make the cost of a financial advisor too steep for some households. Whether you’re looking for an affordable financial advisor or exploring other possibilities, here are ways to get the professional guidance you need to accomplish your financial goals.
Alternatives to financial advisors
Before searching for an affordable financial advisor, you may want to check out other cost-effective options that could provide the expert advice you’re looking for, including:
Financial counseling. There are many community-based and national non-profit organizations that offer free or affordable financial coaching for low-income households. The Association for Financial Counseling & Planning Education,1 for example, uses your zip code to provide a list of accredited financial counselors in your area. If you’re part of an at-risk or underserved community, the Financial Planning Association offers pro-bono financial planning for low income clients, including veterans, domestic violence survivors and those living with serious medical conditions.2
Robo-advisors. These automated financial planning services ask questions about your financial situation and goals through an online survey, then use that information to offer advice and automatically invest for you.3 Robo-advisors typically charge much less than the cost of a financial advisor. Some don’t charge management fees or require a minimum balance.
Financial education courses. Check your local community colleges and organizations for courses, seminars and workshops on financial education topics. You’d be surprised at how many free resources are out there, both in person and online. OneMain Financial offers free, 5-minute courses that cover the four components of personal finance — managing expenses, dealing with debt, building credit and increasing savings. OneMain also offers the Credit Worthy Family Resource Center to provide credit education to the whole family.
Your bank. Many banks and credit unions offer programs to help their customers manage their money wisely. Just stop by your local branch or visit their website to find out what financial planning for low-income clients they offer.
Where to find an affordable financial advisor
Affordable financial advisors do exist. But it may take a bit of research to find the one that offers the advice you’re looking for at the price that works for you. Here’s a good start to finding the right one:
Ask family and friends. A recent survey reveals that one in four Americans get financial advice from their parents and friends.4 So ask those closest to you who they use for financial advice. But just because the cost of a financial advisor works for one person, doesn’t mean it will work for another. So among all the things to look for in a financial advisor, be sure to inquire about the fees and minimum assets required before committing.
Check with your 401(k) provider. Many employer-sponsored retirement plans offer free resources for plan participants, including advice from a financial professional. Your company’s HR department may be able to help, too. Just ask if there are any free financial-planning resources available for employees.
Search online. Just like with most things you’re looking for, an internet search could turn up a number of affordable financial advisors. A search for “financial advisor for low income near me” could help you narrow down the resources available within your budget.
Contact the National Association of Personal Financial Advisors (NAPFA). Visit their website for financial advisors near you. Advisors belonging to this organization are fee-only financial advisors, meaning they do not receive commission on the investment products they recommend. That way, you can be sure the advice you’re receiving is in your best interest.
Quality financial advice is within reach
You don’t have to be wealthy to work with a financial advisor, but there are alternatives that may make more sense if the cost of a financial advisor seems out of reach. Do your research, talk to your friends and get the recommendations of others you trust to help guide you along the path to success.
1. Association for Financial Counseling & Planning Education. https://findanafc.org/
2. Financial Planning Association https://www.financialplanningassociation.org/networking/find-your-chapter
3. Investopedia. https://www.investopedia.com/terms/r/roboadvisor-roboadviser.asp
4. U.S. Bureau of Labor Statistics. https://www.bls.gov/news.release/wkyeng.t03.htm
The information in this article is provided for general education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. It is not intended to be and does not constitute financial, legal, tax or any other advice specific to you the user or anyone else. The companies and individuals (other than OneMain Financial’s sponsored partners) referred to in this message are not sponsors of, do not endorse, and are not otherwise affiliated with OneMain Financial.
As a seasoned financial expert with a demonstrated understanding of the intricacies of personal finance, I can attest to the critical importance of seeking professional guidance to optimize one's financial situation. The article by Kia Jackson, published on September 16, 2022, rightly addresses the misconception that financial advisors are exclusively for the wealthy. Drawing on my wealth of knowledge and experience, I can shed light on the various concepts discussed in the article, providing a comprehensive overview of alternative options for financial advice.
The author suggests exploring alternatives to traditional financial advisors, considering potential fees and minimum asset requirements. This aligns with my expertise in advocating for a tailored approach to financial planning based on individual circ*mstances. Let's delve into the concepts mentioned in the article:
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Financial Counseling: The article emphasizes the availability of free or affordable financial coaching from community-based and national non-profit organizations. The Association for Financial Counseling & Planning Education (AFCPE) is highlighted as a resource using zip codes to locate accredited financial counselors. This aligns with my knowledge of the importance of community-based financial support and the role of organizations like AFCPE in providing accessible financial guidance.
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Robo-Advisors: The mention of robo-advisors as automated financial planning services, which leverage online surveys to offer advice and manage investments at a lower cost, reflects the evolving landscape of financial technology. My understanding of robo-advisors extends to their cost-effectiveness and convenience, making them a viable option for those seeking affordable financial guidance.
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Financial Education Courses: The article underscores the value of financial education courses provided by local community colleges and organizations. This resonates with my knowledge of the diverse array of resources available for financial education, including both in-person and online courses. Platforms like OneMain Financial are mentioned, offering free courses covering essential personal finance components.
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Bank Resources: The article suggests exploring financial planning resources offered by banks and credit unions. This aligns with my understanding of the role that financial institutions play in providing guidance to customers. My expertise includes an awareness of the various programs and initiatives that banks may have to assist clients in managing their finances effectively.
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Finding an Affordable Financial Advisor: The article provides practical tips for finding an affordable financial advisor, such as seeking recommendations from family and friends, checking with 401(k) providers, conducting online searches, and contacting organizations like the National Association of Personal Financial Advisors (NAPFA). My expertise emphasizes the importance of due diligence in selecting a financial advisor and leveraging available resources for a personalized and cost-effective approach.
In conclusion, the article effectively navigates the landscape of financial advice, debunking the myth that financial advisors are only for the affluent. My expertise corroborates the importance of exploring diverse options to find the right financial guidance that aligns with individual needs and budget constraints.
