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Many people have questions about when they should prioritize getting a financial advisor. Managing your finances effectively is crucial for achieving your financial goals and securing a stable future. However, navigating the complex world of personal finance can be overwhelming, especially if you lack the necessary experience, education, or time to make informed decisions.

This is where a financial advisor can be a valuable ally, providing expert guidance and tailored strategies to help you maximize your financial potential. But how do you know when it’s the right time to seek professional advice? And how much money should you have before getting a financial advisor?

Let’s explore the key factors to consider when deciding whether to engage a financial advisor and how to determine the appropriate financial threshold. By understanding industry standards, cost structures, and potential benefits, you’ll be equipped with the knowledge needed to make an informed decision about your financial future.

Do Financial Advisors Have a Minimum Investment Threshold?

It is fairly common for financial planning professionals to target a certain level of investable assets for their clients to possess. The Street explains that “Minimums are not uncommon in financial planning, whether it’s $50,000, $500,000, or $1 million.” Those figures, however, aren’t necessarily a “minimum” for a financial advisor to work with clients. Most firms have different levels or programs available for working with clients in various stages of their lives.

In wealth management, there are more opportunities to provide value to clients with $500,000 or more in investable assets. Some of those opportunities may include: 

Comprehensive Financial Planning:

Wealth management professionals have the expertise to create personalized and holistic financial plans that encompass various aspects of your financial life. They can assess your current financial situation, identify your goals, and develop strategies to achieve them. This includes:

  • retirement planning
  • tax optimization
  • estate planning
  • Social Security maximization

and more. With higher investable assets, wealth managers can offer more sophisticated and tailored solutions to address complex financial needs.

Broader Investment Strategies:

Wealth managers are well-versed in investment strategies that may be able to optimize returns while managing risk. With higher investable assets, they can provide access to exclusive investment opportunities, diversify portfolios across different asset classes, and employ advanced techniques like alternative investments, private equity, or hedge funds. These strategies aim to enhance returns and align investments with specific objectives such as capital preservation, income generation, or long-term growth.

Tax Efficiency:

High-net-worth individuals often face complex tax situations. Wealth managers can leverage their knowledge of tax laws and regulations to implement tax-reduction strategies. They can help minimize tax liabilities through techniques like tax-loss harvesting, asset location optimization, charitable giving, and estate tax planning. By maximizing after-tax returns, wealth management professionals can add significant value for clients with larger investable assets.

Risk Management and Asset Protection:

With larger portfolios, the preservation of wealth becomes increasingly important. Wealth managers can help clients identify and mitigate risks by implementing tailored risk management strategies. This may involve diversifying investments across different asset classes, setting appropriate asset allocation targets, managing exposure to market volatility, and protecting assets through insurance and liability management.

Family Wealth and Legacy Planning:

Clients with higher investable assets often have more complex wealth transfer and succession planning needs. Wealth managers can assist in structuring family trusts, establishing philanthropic initiatives, facilitating intergenerational wealth transfers, and coordinating with legal and tax professionals to ensure a smooth transition of assets and the preservation of a family’s legacy.

Working with a financial advisor

How Much Does it Cost to Hire a Financial Advisor?

Before discussing the cost of working with a financial advisor, it is important to discuss the relative value of doing so. Different advisors provide varying levels of value based on their levels of service and how involved they will be in executing the financial plan over time. 

Because there are many types of financial advisors, and because each offers an array of financial advice, the relative value of working with a wealth manager can be difficult to precisely quantify.

  • In a groundbreaking study, Vanguard found that a financial advisor can potentially add about 3 percent per year to a client’s annual investment return, by utilizing “ best practices in professional financial advisory services.“ 
  • In a similar study, Russell Investments placed that figure at a potential 4.5 percent per year. 
  • Envestnet PMC puts the potential value of a wealth advisor at 3 percent per year.

That potential value is certainly worth considering.

In terms of costs, financial advisors typically follow one of three general cost structures.

Some financial planners sell products for a commission. While this can seem cost-effective, it may be complicated to know if the product being offered is truly best for your needs.

Some wealth managers charge a flat fee for a particular service that is provided. This may mean that clients need to pay an additional fee each time the financial plan is updated. Remember, Financial planning is ongoing. A financial plan becomes stale as the economy, market, laws, or your personal situation and goals change. An active plan is necessary to stay on track and meet your goals.

Finally, for some wealth advisors (like Dechtman Wealth Management), the costs are based on a percentage of the amount of money we are helping manage. By working in this way, we can help ensure that your financial planning is nimble and robust and that your financial well-being is always our top priority. This aligns your goals with Dechtman Wealth Management so all parties are on the same side of the table.

Who Should Consider Getting a Financial Advisor?

We believe that anyone who is interested in achieving financial goals, and doesn’t have the experience, education, and time to make it happen, should consider hiring a financial advisor. Even if you are financially savvy, it doesn’t hurt to get a second opinion if you’re managing your own investments.  

It’s important to have conversations with an advisor no matter where you are in your financial journey. You don’t want to wait until you’re at retirement to make plans. Take advantage of strategies, let the market work for you, and compound over years.

Contact us today!

Important Disclosure Information

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Dechtman Wealth Management, LLC [“DWM”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from DWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. DWM is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the DWM’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at

Please Note: DWM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to DWM’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Please Remember: If you are a DWM client, please contact DWM, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.  Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently.

Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

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Jordan Dechtman

A financial services professional for over three decades, Jordan Dechtman’s mission is to help clients live better with more opportunities for fun and family time. Ideally, his goal is to help them achieve their dreams. Jordan brings a unique set of skills and experiences to the industry. His work ethic and drive to improve both himself and those around him have been honed during his 30+ years as a high net-worth private wealth advisor. Jordan holds a BS in Finance from the University of Arizona. Through his memberships in both the Financial Planning Association and the Financial Services Institute, he is dedicated to championing the financial planning process. Based on assets under management, Jordan has consistently been recognized by Securities America as being among the top 1% of over 1900 registered representatives.