Women are more willing than men to seek financial advice when they are earning less money and have fewer assets, a recent GOBankingRates survey found. According to the survey, 38% of women believe it’s worth seeking professional financial advice even if you earn less than $50,000, while only 27% of men agree. In addition, 23% of women would consider paying for financial advice with less than $1,000 in savings and investments, while only 13% of men would pay for advice at this threshold. But who is right?
In this “Financially Savvy Female” column, GOBankingRates spoke with Kelly Regan, CFP, vice president and financial planner at Girard, a Univest Wealth Division, to better understand these findings. She shared her thoughts about when it’s really worth it to pay for financial guidance.
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I think it depends on what advice you’re looking for. There are tools online that could guide you on things such as budgeting and how to begin investing, but if your questions are less general, then seeking help makes sense. Think of it like home improvement projects — you can probably get away with unclogging your drain yourself, but if you need your sink taken apart, you’re probably calling a plumber.
Typically, I would recommend keeping your investments simple and utilizing index funds or ETFs until you get to maybe $50,000 of investable assets — then think about introducing a more complicated strategy.
I find there is more value in paying a professional for advice when they can offer you holistic financial advice — more than just investments. This could include financial planning that touches on debt management, education savings and retirement planning.
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The benefit is time. Getting started with a financial plan and investing your money earlier gives you more time to let that plan fall into place and your money to earn money. It’s amazing how the power of compounding will increase your chances of success.
Not all advisors and planners charge on assets under management. Some have financial planning for a fee or charge hourly for their work. This might be an option for those who don’t have a ton of investable assets or immovable assets — like a 401(k) that is held at their company — but still want advice.