The Minimum Investment for a Financial Advisor

Helping people make smart financial decisions

Considering a financial advisor? Here’s what to know beforehand.

Find financial advisors who serve your area, free!

February 2025

For many, working with a financial advisor may seem like something for the super rich. But you don’t need to be wealthy to potentially benefit from financial advice.

A financial advisor could help you best determine if you are on track to meet your long-term financial goals. This expert could work to help you potentially save more, reduce your debt, invest more wisely and avoid tax traps.

Research suggests people who work with a financial advisor could end up with about 15% more money to spend in retirement.¹

A 2022 Northwestern Mutual study found that 62% of U.S. adults admit their financial planning needs improvement. However, only 35% of Americans work with a financial advisor.²

Net worth from age 45 to 77

Final lifetime net worth with and without a financial advisor.

Disclaimer: This example demonstrates the potential final lifetime portfolio value, accounting for estimated investment returns, tax savings and inflation over different life stages for an individual starting with $500,000 at age 45, through age 77. Under a set of core assumptions, this consumer profile is projected to have a final lifetime portfolio value of approximately $3.24 million if retaining the services of a financial advisor – not accounting for additional savings or portfolio withdrawals – versus a final estimated lifetime portfolio value of $1.56 million without the services of a financial advisor. This example is based on the valuation framework presented in SavvyRetire's whitepaper “The Value of a Financial Advisor: What's It Really Worth?” (Nov. 2024). The value of professional financial advice is only an illustrative estimate and varies with each unique client's individual circumstances and portfolio composition. Carefully consider your investment objectives, risk factors, and perform your own due diligence before choosing a financial advisor.

SavvyRetire's no-cost tool can help you find and compare vetted fiduciary advisors. How does the free tool work? It's easy:

Short questionnaire takes just a few minutes

Match with vetted fiduciary financial advisors

Compare your matches and choose the one you feel is best for you

The fiduciary financial advisors you match with serve your area and are legally bound to work in your best interest. You may even be able to instantly connect with an advisor for a free introductory call. Advisors are vetted through our proprietary due diligence process.

How Much Money Should You Have Before Hiring a Financial Advisor?

Investment managers, financial consultants, financial planners and even robo-advisors are all considered financial advisors. As a result, minimum thresholds may vary widely.

For example, an article from Delta Wealth Advisors notes that depending on the net worth advisor you choose, you should consider hiring a financial advisor when you have between $50,000 - $1,000,000, but indicates that between $100,000 - $500,000 in liquid assets is the level at which an advisor’s benefits may potentially outweigh the costs.³

Some advisors may have minimum asset thresholds and could vary by advisor or firm. This could be a relatively low figure, like $25,000, but it could also be $500,000, $1 million or more.

However, people with less than $100,000 in assets could also potentially benefit from hiring a financial advisor and getting guidance on how to potentially grow their wealth.

How Much Do Financial Advisors Cost?

For many, the excuse for not working with a financial advisor could be the assumption that they can’t afford it. In actuality, the fees financial advisors charge could potentially be less than most people think, and the insights they may add could potentially surpass an advisor's cost.

There are two types of financial advisors: fee-only and commission-based.

Fee-only financial advisors may be considered preferable, especially fiduciaries, who are obligated by law to act in your best interest and disclose any potential conflicts of interest.

This free quiz can match you with vetted fiduciary financial advisors who serve your area in just a few minutes.

Commission-based advisors, on the other hand, are paid based on the product referrals and sales they make.

The truth is, financial advisors often charge a percentage fee for Assets Under Management (AUM) of between 0.59 - 1.18%. A 2023 AdvisoryHQ study found that the average AUM fee for a $50,000 account was about 1.18% or $590.⁴

Common Fee Types & Costs⁴

Percentage of Assets Under Management: 0.59% - 1.18% per year
Fixed Fees: $7,500 for portfolios under $500K

The figures above are examples only and used to illustrate what typical fees for financial advisors and their structure looks like. Please carefully review fee structures with your investment advisor and review your advisor’s form ADV and CRS.

How to Find a Financial Advisor

Consulting a fiduciary financial advisor could help you determine a plan that factors your assets and taxes into your overall retirement and estate-planning goals. Fiduciaries are obligated by law to act in your best interest and any potential conflicts of interest must be disclosed.

Yet knowing how to find a vetted fiduciary advisor could be, for many, the most confusing task of all. Common Google searches related to the topic reveal a desperate search for direction. "Fiduciary financial advisors near me,” "best fiduciary financial advisor,” and "financial investment advisors near me” are searched hundreds of times per day.

Finding a fiduciary shouldn't be that hard. Thankfully, now it isn't.

SavvyRetire's free matching quiz helps Americans get matched with fiduciary financial advisors who serve their area so they can compare and decide which advisor to work with. All advisors on the matching platform have been vetted through our proprietary due diligence process.

The quiz takes just a few minutes, and in many cases, you can be connected instantly with an advisor to have an introductory call.