When Your Investable Assets Reach This Number, It's Time To Hire A Financial Planner

Investment with the goal of retirement can be an important part of any American's financial strategy. Part of this strategy is having an understanding of how much money you will need to retire rich, and making choices on how to achieve this number. A watermark of this investment journey is when you choose to hire a financial planner. Once you make the switch from managing your own finances to doing so with the help of a professional, your assets and taxes become far less complicated.

While experts have a variety of opinions on when the exact best time in your investment journey is to hire a professional, many say you should bring in help once you either surpass the $50,000 valuation mark or make a major life transition like buying a new home. At the end of the day, even if you are investing your money on your own to maximize profits, adding a professional into the mix will only help. Additionally, those with more diverse holdings, or a higher number of assets — including property — can benefit greatly. Because of this, wealth advisors say hiring a professional is a must for those in the $100,000 to $500,000 range. The best advisor for you varies based on your particular needs, and no matter what level of assets you're working with, you should certainly consider some important tips for choosing a financial advisor before making any major commitments.

While it is true that working with an advisor can be beneficial regardless of your asset value, it is important to also understand the costs associated with hiring an advisor. The cost structure of a financial advisor varies based on their qualifications and roles. Often, advisors charge a fee for your Assets Under Management (AUM). This AUM charge varies based on the kind of service you use, with certified financial planners generally having lower rates compared to larger wealth management services. These fees can take the form of a percentage of your asset value and get charged at the end of each quarter, though other advisors may just charge a flat fee for their work.

Many firms offer pretty comprehensive aid for customers with assets above the company's designated wealth thresholds. Some might require their clients to have around $500,000, others might have smaller minimums, and others still might refuse to work with anyone with less than $1,000,000 in investable assets. Many work directly alongside customers and keep them involved in their own finances, while others might take over asset management completely. Regardless of which option you go for, working to build liquid capital while leveraging personal investment is a great place to start, and progressing to a financial planner as soon as possible will ensure you continue to grow your net worth.