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Megan C
Megan C , Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16539
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Personal Finance question. Is it worth it to use a financial

Resolved Question:

Personal Finance question. Is it worth it to use a financial planner for savings and investments? A friend of mine who works for ameriprise offered to help me come up with a personal savings plan for $500 and 1% of my portfolio every year. In your opinion,
is this advice worth it? I could just as easily go into some low expense ETFs and use ETrade or something.
Submitted: 3 years ago.
Category: Finance
Expert:  Megan C replied 3 years ago.
Thank you for your question, and thanks for using Pearl.com.
I would not pay someone 1% of the balance in my portfolio every year. I may give them a 1% commission on the earnings that the portfolio generates, but I would not give 1% per year.
If it's $500 plus 1% of your earnings, I say go for it. Otherwise, you're paying him, even if you lose.
Is there anything else I can assist you with today? If not, rate my response as "excellent" so that I may receive credit for assisting you today. Thanks again!
Customer: replied 3 years ago.
$500 seems steep just for a savings plan every year, seems like I could get similar investment advice by using an online investment portfolio wizard that takes into account my preferred level of risk. Are these types of wizards worth a damn? What could a financial advisor give me in terms of investing that I can't get from an online trading account?
Expert:  Megan C replied 3 years ago.
Honestly, it all depends on how much money you have. If you won the Powerball I'd say it would be worth it to pay someone $500 plus 1%. If you're just an average American you could do more with that money.
An online wizard can give you some ideas, but use your own common sense when figuring if it is giving you good advice.
Some advisors are genius...and some are just average.
I don't think that this would give you much of an edge, and having to pay someone actually reduces your returns.
Thanks
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