Does the age of your financial advisor matter? (2024)

FAQs

How old should your financial advisor be? ›

The average age of the profession also contributes a bit. Many financial advisors are in their late 50s and closing in on retirement.

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 $500,000, $1 million or even more.

“Our industry is all about people and we need a diverse range of professionals to cater for a wide range of clients, so age should not be a limiting factor,” he says. There is nothing to prevent anyone of working age becoming an adviser based on age alone.

The age group with the most advisers was 50-59, which dominated 33.2 per cent of the overall total. After that its was 40-49 (26.5 per cent), 30-39 (17.6 per cent), with over 60s following closely behind with 17 per cent.

According to Adviser Ratings, consumers could expect the average adviser to be 49 years old with an annual salary of $145,000. In regards to educational levels, the average adviser was university degree qualified, whilst only 50 per cent of practice advisers met the educational requirements.

Most financial consultants, brokers, insurance agents and advisors are not fiduciaries. You will fare better with fiduciary certified financial planners and registered investment advisors. They may still mismanage your money, but if they run afoul of your financial interests, you can take them to court.

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.

Whether you should consider working with more than one advisor can depend on your overall goals and financial situation. If you're fairly new to investing and you haven't built up a sizable net worth yet, for instance then one advisor may be sufficient to meet your needs.

What are the disadvantages of having a financial advisor? ›

Potential negatives of working with a Financial Advisor include costs/fees, quality, and potential abandonment. This can easily be a positive as much as it can be a negative. The key is to make sure you get what your pay for. The saying, “price is an issue in the absence of value” is accurate.

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.

Should I get a financial advisor in my 20s? Not every decision requires a financial advisor, but if you prefer to have someone to talk to about major financial decisions, or if you'd like someone to manage your assets, then an advisor may make sense for you.

Starting financial planning at any age is a wise decision, and it's great that you're considering it. Here are some steps you can take to begin your financial planning journey: Set Clear Financial Goals: Determine your short-term and long-term financial goals.

Many of us see working with a financial advisor as something only for people nearing or living in retirement—or for those with a lot of money who want others to manage it. But even if you're young, an advisor can help get you on the right financial track.

How a young CFP hit the ground running. The average age of a financial planner in the U.S. is nearly 51. With 43% over age 55, it's hardly a youthful profession.