More than a third of Americans consult a financial advisor, according to a Bankrate survey, but could they be spending too much on professional guidance? Alex Choi, co-founder and CEO of FinanceHQ, sat down with Brad Smith in the studio to discuss the right amount of money investors should allocate and pay for advisory services.
FinanceHQ uses its platform to connect investors with trusted financial advisors.
“Many advisors have a flat fee, so on an annual basis you’ll probably be looking at somewhere between $3,000 and $7,000. Anything above that may seem expensive, but consider the fact that it can go beyond that. “More than just doing things a little bit outside of the normal range,” Choi told Yahoo Finance. “Again, we want to make sure we are aware of that.”
He describes what makes a good advisor “going above and beyond” to assess risk and establish investment guardrails.
“There are several questions you should be prepared for and come to the table with. One of them is: Are you a fiduciary? That means you have a moral and legal obligation to put my best interests first. ” Choi explains.
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This post was written by Luke Carberry Mogan.
