Financial advice has become more accessible, and it’s possible to get some advice for free. The digital world has unleashed a ton of resources for little to no cost. Some paid services might provide more personalized and individualized advice. But free advice has its merits and can cover a lot of ground. Discover how you can find quality financial education online that can have a positive impact on your finances.
How much does an in-person financial adviser typically charge?
Most people think they need to sit down with a professional financial adviser to get sound advice. In-person financial advisers can help pinpoint your goals and develop an investment plan. But their services are not free and may not make sense for everyone’s budget. Financial advisers are usually paid in one or more of the following ways.
Flat fee
Some financial advisers may charge you a one-off flat fee to assist with creating a financial plan. The adviser will evaluate your cash flow, debt obligations, savings, financial goals, investments, budgeting, and more. Financial adviser fees vary greatly but it’s common to see advisers charge thousands of dollars per year for their services.
Commission
Some advisers receive a commission when you buy the investment products they recommend. This commission can range anywhere from 3% to 6% of the total investment.
Hourly rate
Instead of a flat fee, some advisers will charge an hourly rate for offering advice and drawing up a financial plan. This can be anywhere from $100 to $400 per hour. Depending on how much personalized expertise you need, your total cost can reach thousands of dollars.
AUM fee
Many advisers charge an assets under management (AUM) fee. This is an annual fee based on a percentage of the total value of your investments. Generally, people with higher net worths end up with a lower percentage. Most AUM fees range from 0.25% to 1% a year. Usually, this fee includes ongoing portfolio management and may include help with financial planning.
Free resources for financial advice
Consumers have many options for finding free financial advice. These are some of the resources you can explore.
Tap into your existing bank or credit union
Some banks and credit unions offer free educational resources around personal finance, investing ideas, and other finance topics. Many financial institutions have a library of online courses, blog posts, and videos. Some banks and credit unions also provide free one-on-one personalized sessions. Get in touch with your bank or credit union to discover the services they offer.
Government financial services
The U.S. Securities and Exchange Commission offers free financial education through its website. If you’re a government employee or military personnel, you may be able to access additional resources through your employer.
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COVID pro-bono financial advisers
The COVID-19 pandemic created financial obstacles for many consumers. A host of financial resources, many of which are low-cost, emerged as a result of the pandemic. Here are our favorites:
XY Planning Network
XY Planning Network helps you find a financial adviser on your terms. You can search advisers by specialties, location, and more.
The National Association of Personal Finance Advisors
The National Association of Personal Finance Advisors is a great place to search for financial advisers. Its website also offers plenty of free financial advice and consumer resources.
Financial Planning Association
The Financial Planning Association is offering financial advice to individuals and families on a pro-bono basis. It has plenty of advisers in its database ready to offer guidance and personalized help during this time.
Foundation for Financial Planning
The Foundation for Financial Planning is pairing up Americans with financial advisers on a pro-bono basis. The organization also offers emergency grants and maintains an online resource center with free financial advice.
Credit counseling services
If you’re struggling with credit card debt, credit counseling services may be able to negotiate and settle your debt on your behalf and even help you create a debt repayment plan. They also offer personalized, free financial advice to help you get out of debt and stay out of debt.
These services are typically only available to people with credit card debt and may come with certain restrictions. In some cases, you may have settled marks appear on your credit report.
Robo-adviser
Robo-advisers combine the best human financial adviser expertise with technology. Robo-advisers offer financial advice and personalized recommendations based on data and mathematical formulas. The fees associated with robo-advisers can range dramatically. Some may charge as little as $1 per month or as much as 1% of your total investments a year.
Building Your Financial Education
Financial advisers can serve their clients and offer personalized recommendations. They can walk you through the journey, but advisers aren’t within everyone’s budget. You may have to pay a financial adviser thousands of dollars each year to help you navigate your finances. Some people benefit from free financial resources that give them a good education on the subject. This path isn’t for everyone, but it is possible to save thousands of dollars in fees if you look for free or affordable financial education.
FAQ
What types of financial topics can I get free advice on?
You can receive free information on any financial topic. There are many articles, videos, podcasts, and other types of content that cover core financial topics.
Can I trust the advice from free sources?
You will have to do your due diligence before trusting advice from free sources. Many reputable companies and media outlets offer good advice or information, but you have to assess your situation before making any decisions.
Where can I find personalized financial advice?
It is possible to receive personalized financial advice online. Some artificial intelligence tools can deliver personalized advice and financial advisors can also offer great insights. It is important to consider your budget and financial needs before deciding where to get your advice.
