Empowering confident financial choices in retirement
Minimum investment requirements for working with a financial advisor
Planning for or living in retirement? Here’s what to know before choosing a financial advisor.
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Helping people make smart financial decisions
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.
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.
🏆 Net worth from age 45 to 77
Final lifetime net worth with and without a financial advisor.
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.
Annuities’ 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.
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💰 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.
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.
Typical Minimum Investment Requirements
- Entry-level advisors: $25,000
- Mid-tier advisors: $100,000 – $500,000
- High-end advisors: $500,000+
- Private wealth management: $1,000,000+
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.
Find a Financial Advisor💸 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.
🏆 Recommended Advisor Type
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.
Match with Fiduciary AdvisorsCommission-based advisors, on the other hand, are paid based on the product referrals and sales they make.
💰 Understanding Advisory Fees
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.
Key considerations when evaluating fees:
- Compare fee structures across multiple advisors
- Understand what services are included
- Consider the potential value added vs. cost
- Ask about fee reductions for larger accounts
| Fee Type | Typical Rate | Example ($50,000 account) |
|---|---|---|
| Percentage of Assets Under Management | 0.59% – 1.18% per year | $295 – $590 |
| Fixed Fees | $7,500 for portfolios under $500K | $7,500 |
Note: 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.
📖 Real Client Success Story
How one retired teacher achieved financial peace of mind through proper planning
🎓 Meet John Miller
John Miller, 67, is a retired high school history teacher living in Tucson, Arizona. After dedicating his life to education and family, he began thinking seriously about his retirement at age 55. Throughout his 35-year teaching career, John witnessed countless students grow and succeed, but he always worried about his own financial future. Living on a teacher’s salary meant careful budgeting, and retirement planning often took a backseat to immediate family needs. However, as he approached his mid-fifties, the reality of retirement became increasingly pressing, prompting him to seek professional guidance for his financial future.
At a local retirement planning seminar, John first heard about fixed annuities. He was skeptical at first, but after detailed discussions with a financial advisor, he decided to allocate part of his savings into an annuity plan. The advisor explained how annuities could provide guaranteed income for life, protecting him from market volatility and inflation concerns. After months of research and consultation, John made the decision that would transform his retirement experience. He allocated a significant portion of his teacher’s retirement savings into a carefully structured annuity plan, ensuring steady monthly payments that would last throughout his golden years.
🇮🇹 Living the Dream
Now in retirement, John receives guaranteed monthly payments from his annuity, completely shielded from stock market volatility or inflation concerns. With this stable income, he covers his living expenses—and lives out dreams he had long put aside.
Just last spring, John and his wife Linda traveled to Italy. They wandered the cobblestone streets of Florence, sipped Tuscan wine, and shared handmade gelato in the sun—all without stressing over a single bill.
👨🎓 Supporting Family Legacy
More importantly, John used part of his annuity income to support his grandson Benjamin’s college education. Every year, he contributes toward half of Ben’s tuition, helping him avoid burdensome student loans. This financial support represents more than just money—it’s John’s way of investing in his family’s future and ensuring that education, which was so central to his own life, remains accessible to the next generation. Benjamin is now pursuing a degree in engineering, and John takes immense pride in knowing that his careful retirement planning is directly contributing to his grandson’s success and bright future prospects.
Guaranteed monthly income protected from market volatility
Freedom to pursue lifelong dreams without financial stress
Ability to help family members achieve their goals
No burden on children, complete financial independence
🔍 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.
🎯 Annuities’ Free Matching Quiz
Annuities’ 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.
🗺️ Interactive US Map – Find Financial Advisors by State
Click on any state to find vetted fiduciary financial advisors in your area. Hover over states to see quick information.
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Select a state from the map above to find financial advisors in your area. We have vetted fiduciary advisors available in all 50 states.
⚠️ Important Disclaimer
All investing involves risk, including loss of principal. This is not an offer to buy or sell any security. Annuities is a registered investment adviser that provides information and referrals to third-party fiduciary advisors. Past performance does not guarantee future results. Please consult with a qualified financial advisor regarding your individual situation.
📚 Sources:
- “Journal of Retirement Study Winter” (2020). The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of your future results. Please follow the link to see the methodologies employed in the Journal of Retirement study.
- “Planning and Progress”, Northwestern Mutual (2022)
- “How Much Money Should You Have to Hire a Financial Advisor?”, Delta Wealth Advisors (July, 2022)
- “Average Financial Advisor Fees in 2023 | Everything You Need to Know”, AdvisoryHQ (July 2021). The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of your future results. Please follow the link to see the methodologies employed in the AdvisoryHQ study.