Photo of Eric R. Ebbert, CFP®, MBA, CEO Eric R. Ebbert, CFP®, MBA, CEO Jun 03, 2020

This is a question often asked by people who are taking their first steps into financial planning — is a financial advisor worth the money or can I just do this on my own by being diligent with my finances?

While we cannot make that decision for you, we can outline some important information to consider when determining whether or not a financial advisor is worth working with. 

How much does working with a financial advisor cost?

The rate for working with a financial advisor varies, but most advisors charge 1% of the investments that they manage for you. The fee often goes down the more money you have invested.  To determine whether or not this is worth it, you should consider the average rate of return for investments. 

You may have heard that 12% is the average return for the S&P 500, but is that number accurate? Basically, if you tally up all of the returns garnered from the S&P 500 since January 1, 1994 through December 31, 2019, the average rate of return is roughly 11.5% (Yahoo! Finance). But if you look more closely, you will notice that the return rate in 2014 was 13.81%, while the return rate in 2015 was 1.31%. The point is, you have to consider how long you are planning to invest. If you are considering implementing a plan to see you through the next five, 10, 20 or more years,  then it is more than likely that the fee you pay your financial advisor will be overshadowed by the professional advice you recieve. 

What are the benefits of using a financial advisor?

The most significant benefit of using a ProVise financial advisor is that you have access to someone who has been certified in financial planning. This requires years of experience and industry knowledge, as well as a proven track record of successful financial management. 

Additionally, by using a ProVise advisor, you do not have to manage your investments on your own, which can save you time and stress. Our team of CERTIFIED FINANCIAL PLANNER™ professionals at ProVise Management Group can help you navigate your financial goals. We will provide a personalized plan for you at a fiduciary standard of care and offer an unconditional money-back guarantee. If for any reason you are not satisfied with the written plan, simply return it to us and we will refund 100% of the fee paid. 

Once you are ready to work together, we will create an implementation strategy and establish a monitoring system that meets your needs. Contact our ProVise team to schedule a consultation today.