Think You’re Too Poor To Get A Financial Advisor? Think Again
Another myth that persists about seeking professional financial advice is that it harms the people who stand to gain the most.
About 1 in 4 Americans without a financial advisor say they believe they don’t have enough money to need a financial professional, according to a report released Thursday by insurance company Primerica. Similarly, 35% reported not having an advisor because they believed the cost would be too high.
“Many families want help reaching their financial goals but sell themselves short because of misconceptions that financial counseling is too expensive or only for the wealthy,” said Glenn Williams, CEO of Primerica, in a statement. “These ideas can set families back.”
The Primerica survey focuses on low- to moderate-income families, polling more than 850 US adults with incomes between $30,000 and $130,000. The quarterly series began in 2020, and the company’s latest installment adds to a growing body of research on the subject.
Last year, a report from Talker Research and Zoe Financial found that only 26% of Americans have a financial advisor — a major disincentive to the myth that advisors are wealthy people, the report said.
“People still think that financial advice and investment management is only for the rich, which can discourage them from seeking guidance,” said Andres Garcia-Amaya, CEO of Zoe Financial, in the report.
Financial advisers are ‘very important’ for low-income families
The lower a person’s income, the less likely they are to seek financial advice from a professional, according to a recent Gallup survey.
Despite this trend, experts say low-income and disadvantaged communities benefit equally from professional advice.
A 2025 study found that “comprehensive” financial advice – which includes aspects beyond just investing, such as credit and savings – benefited the average family by $4,384 per year, or 7.5% of annual income.
“Most importantly, this type of advice can be especially useful for low-income earners who have historically been underserved,” wrote Shlomo Benartzi, a behavioral economist and study author, noting that the benefit for low-income families “may be 10 times larger” than the average benefit.
What you need to know about financial advisors – and fees
Not all financial advisors are created equal. Many focus only on investment advice and management, while others offer a range of services from basic budgeting to estate planning and others use the title but primarily sell specific financial products, such as insurance.
The alphabet soup of different certifications and designations only adds to the plethora of options facing people looking for the right mentor.
In terms of general, trusted financial advice, the certified financial planner, or CFP, name is considered the gold standard.
CFPs receive extensive training and are required to adhere to strict ethical standards. They can provide many financial planning services and, most importantly, they must act as a fiduciary, meaning they put their clients’ financial interests ahead of their own. That said, CPFs can sometimes be among the most expensive options.
In 2024, Money surveyed more than 1,000 CFPs to find the best financial planners in the US.
Our survey found that nearly 53% of CFPs have income or asset requirements when taking on new clients, meaning they often advise wealthy clients. However, two-thirds of them said they provide pro bono services to underserved clients, effectively waiving that requirement.
If compensation is needed, here’s a quick fix for the standard settings for all editors.
- Hourly rate: Similar to lawyers, some editors charge by the hour.
- A flat or annual fee: Financial advisors typically charge between 0.5% to 1.5% of your assets under management (if applicable). So, for example, if your assets are $100,000, you will have to pay between $500 and $1,500.
- Commissions: Advisors may collect commissions on financial products they recommend.
- Fixed rate: To create a complete financial plan, advisors or financial planners may charge a fixed fee depending on the complexity of your finances and the scope of the plan.
- The keeper: More common for clients with complex finances, some advisors operate on a retainer model and charge monthly, quarterly or annually — regardless of whether you use their services.
The consultant may also put together different types of payment structures.
When dealing with commission-only advisors, some experts recommend caution. While the lack of upfront fees may be seen as an advantage, the potential for conflicts of interest increases. (There are no CFPs in commission-only Money surveys.)
“Different payment systems may make different payments,” Alan Rosca, a securities lawyer, previously told Money. “If a person is only paid to sell investments, then if he doesn’t sell anything, he doesn’t make money.”
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