Thomas Ellis | Financial Advisor - B&C Financial Advisors (2024)

FAQs

Who is most trusted financial advisor? ›

Lack of work ethic. It takes a lot of hard work and discipline to break into a career as a financial advisor. While many are willing to work hard for a period of time, fewer are willing and able to maintain the high-level work ethic required to survive and thrive as a successful advisor.

Very generally, having between $50,000 and $500,000 of liquid assets to invest can be a good point to start looking at hiring a financial advisor. Some advisors have minimum asset thresholds. This could be a relatively low figure, like $25,000, but it could also be higher, such as $500,000, $1 million or even more.

Seek professional advice

Of high-net-worth individuals, 69 percent work with a financial advisor.

BlackRock, Vanguard, Fidelity, State Street Global Advisors, and J.P. Morgan Asset Management are the five largest financial advisory firms in the United States, ranked by assets under management (AUM). The size of these firms allows them to offer a multitude of services to their clients.

Up to 90% of financial advisors fail in 2.5 to 3 years in the business. This number is so high because the industry is full of people who are just trying to make a quick buck and are not in it for the long haul. If you want to be a successful financial advisor, you need to have a plan and stick to it.

A financial advisor is worth paying for if they provide help you need, whether because you don't have the time or financial acumen or you simply don't want to deal with your finances. An advisor may be especially valuable if you have complicated finances that would benefit from professional help.

Research shows that the top reasons people fire their financial advisor are the quality of the advice and services provided, the quality of the relationship and the value of working with that advisor relative to the cost. Many people hire a financial advisor because they want an expert in their corner.

Most of my research has shown people saying about 1% is normal. Answer: From a regulatory perspective, it's usually prohibited to ever charge more than 2%, so it's common to see fees range from as low as 0.25% all the way up to 2%, says certified financial planner Taylor Jessee at Impact Financial.

Is a 1 fee worth it for a financial advisor? ›

On average, financial advisors charge between 0.59% and 1.18% of assets under management for their asset management. At 1%, an advisor's fee is well within the industry average. Whether that fee is too much or just right depends entirely on what you think of the advisor's services and performance.

Hiring a single advisor to manage an extensive investment portfolio may be unwise and restrictive since it can include a large number of undertakings.

Percentage-Based Advisors

This fee can range from 0.5% to 2%. Advisors that charge a percentage usually want to work with clients with a minimum portfolio of about $100,000. This makes it worth their time and will allow them to make about $1,000 to $2,000 a year.

Bank of America, Citibank, and HSBC, among others, have created accounts that come with special perquisites for the ultrarich, such as personal bankers, waived fees, and the option of placing trades. The ultrarich are considered to be those with more than $30 million in assets.

High Net Worth Advisor Basics

The financial services industry generally defines a high net worth individual as anyone with liquid assets of $1 million or more. Liquid assets typically include checking and savings accounts, securities such as stocks and bonds, and shares of mutual funds and exchange-traded funds.

Fisher Investments best accommodates experienced investors who want to continue growing their wealth, while Fidelity is best suited to people who wish to full-scope brokerage and financial services at a high value for money exchange.

Edward Jones's brand is ranked #200 in the list of Global Top 1000 Brands, as rated by customers of Edward Jones. Fidelity Investments's brand is ranked #162 in the list of Global Top 1000 Brands, as rated by customers of Fidelity Investments.

A financial planner can make more sense if you want a deeper analysis of specific components of your finances or desire a well-rounded, long-term plan. For example, if you want to strategically buy stocks and other assets to help you achieve long-term goals, a financial planner might be better equipped to help.