is 18 to young to get a finanical advisor??

Question

i work my butt off, but no matter how hard i try it seems like i can never save...i have 1,289 dollars in my savings account that i WONT touch...but its been that way for years...i want to start saving more to make that grow....do you think im too young to get someone to try and help me with money matters??? how much does a good finacial advisor cost?

Answer 1

18 is absolutely NOT too young to have a financial advisor. You are smart for thinking along those lines, most 18 year olds that I know are more concerned about eating out on the weekends than making their money grow.

A good financial advisor will be someone to hold you accountable to saving on a monthly basis and will help you reorganize and prioritize what you are doing financially.

As for how much a good financial advisor costs, there are two ways that a financial advisor gets paid. One, they could charge you a fee to set up a plan for you and will charge you a annual fee to manage whatever money you have under their management. That fee would not be paid out of your pocket, but would be charged by the company that they have the investment with. Two, they would not charge you a fee upfront, but they would receive a commission from whatever investment or insurance company they place your business with. For someone young like yourself that doesn't have much going on right now financially, a fee-based planner (the first one I mentioned) would not charge you much, maybe $100-300. However if you went with a commission based planner, their fees would be less because they would just get a percentage of whatever money you invest.

You are smart for thinking ahead though, you should look at putting your savings account into an online savings account with a high interest rate like www.emigrantdirect.com, www.ing.com, or www.hsbc.com. Either of those three companies have savings accounts that are right at 5% which is a whole lot more than whatever you're getting at your bank. If you have any questions, e-mail me, this is what I do for a living.

Answer 2

You are never to young to have financial advisor. At 18, with very few assets, a financial planner would be limited in what they could make the money do. However, way more importantly, a good one can help you develop a budget that will allow to invest each month and make that investment grow.

But before choosing an advisor, find out about there fee structure, and make sure that they are licensed. I recommend that you choose one who only does financial planning and wealth management only. Many financial planners offer tax preparation, and may tax preparers offer financial planning, I would stay away from those, they don't specialize in one thing. A good tax preparer or financial planner will meet with your other professional to figure out what is best for you.

If you find that financial planners are too expensive, don't give up hope. Put your money into a high yield savings account, and continue to add to it each after each paycheck. Even if you only contribute $10 a week, eventually that will grow and get bigger. The more you set aside, the faster it gorws. It takes time to develop wealth, the best kept secret isn't a secret, you're already doing it, work hard and save. Just have a little bit of patience, I have yet to see a 20 some year old who is wealthy.

I started with my financial planner at age 23, he helped me develop a budget to set money aside each month, I am now 28, while I am still not rich, and don't have mounds of cash, I did invest in a home, which has now appreciated over $100,000, it's not cash in my pocket, but I have an asset with siginifcant value. I never though I would own a home in California, and now I do at only 28, one of the youngest homebuyers in my town. Seek all the professional guidance you get ,and good luck!

Answer 3

The question of when to get a financial adviser is not how old you are but when is it feasible. By this I mean worth it. In your case I would say yes find one you can trust and make an appointment to talk to them. Some even offer free first time consultations.
Also good for you by saving $1,289 now the question is how can you make that money work for you and that depends on what you are saving it for. If you have this slated for retirement I would suggest a Roth IRA. This will help you 2 ways. One it will grow so that when you retire in 60 years you will have a nice chunk of change and secondly that $1289 could be pre-tax dollars meaning a larger tax refund next year. If you need the money more liquid for instance in case of emergencies then try to find a savings account with a high yield intrest rate if you can or may be by some stocks you researched. If you can get this money to $10,000+ then CD's would be a safe bet to grow your money. Just be careful because when people learn you have extra money they tend to want to borrow it.

Answer 4

You are by no means to young to get a financial advisor. I am 20, and I inquired about an FA through Ameriprise Financial several months ago. They cost between $500-$750 per year and usually try to position you in mutual funds, Roth IRAs, and CDs. Not a bad Idea, but there are much better solutions to grow your money faster. With increased reward comes increased risk, but risk can be limited with self education. Your also young enough to accept much riskier and more rewarding securities/investment vehicles because of age. I must address the fact you are an avid saver, you're much less prone to most of the risk other people face.

Since you're near me on the financial latter, (I have $3,000 in stock & a personal business and several hundred in other savings/checking accounts) I'd suggest go without the financial planner. Read "Rich Dad, Poor Dad" by Robert T. Kiyosaki to open your eyes to the financial world. Its an easy read.

Step 1: Open an account with ING Direct. they pay around 4.5% APR for a SAVINGS ACCOUNT that you can withdraw whenever you need it, but it accumulates interest much faster than a bank's savings account. ( this is to be your "holding pen" and not a long term financial solution.)

Step 2: Read Rich Dad Poor Dad, & you can follow his frequent columns in Yahoo Finance/ Personal Finance.

Step 3: Look into how you want to grow your personal wealth and what risks are going to be associated with it. i.e. stocks, bonds, mutual funds, real estate, or my personal favorite start your own business.

With the steps I just outlined you'll be way ahead of your peers in no time. "me"... maybe

My personal story: at age 17 I had $7 to start with. I got a job and stashed away $200 in U.S. Bonds, (they stunk I made $4 in 1.5 years) I then saved an additional $500 and bought a lawn mower & weed whacker. I started my own lawn service. I now have revenues of $2,500 a month and hired a friend as an employee. I clear $1,700 a month for 7 months a year. I save over 40%-50% and stash it away into my ING account. I then purchsed stock because I've had exposure to the market through my uncle. good luck!

P.s. I only work 13-20 hours a week & still attend college & a massage therapy school full time.

Answer 5

Never mind financial advisors, they charge you a lot of money and are mostly useful for planning complicated investments. What you need is a budget. For three months, write down every penny you spend and where it goes. Categorize the results and you'll probably see where you can reduce your spending. Decide how much you want to save each month, then divide the rest of the money among your expenses. Stick to those amounts, and don't spend any more money than is in your budget.

Some of the best ways to save money, that you can start doing right away:

-Don't carry a balance on any credit card. If you can't pay for it now, you can't afford it.
-If you already have credit card debt, devote part of each paycheck to paying it off as quickly as possible.
-Cut back on eating out and drinking.
-Drive less--carpool, bus, bike, or walk.
-If you need a car, drive a cheap used one. If you have an expensive car, sell it.
-Only buy clothes at second hand or discount stores.

Personal Finance for Dummies is a good book with lots of financial advice, and it's much cheaper than a financial advisor.

By the way, Robert T. Kiyosaki ("Rich Dad, Poor Dad") is full of it. His advice makes no sense for people with less than about a million dollars, and often not even then.

Answer 6

First try and look for financial advice online or at the library. Then if you are in school there might be resources there to help you. And if you are not on your way to college and you are 18 you may want to go do that first. This will lead to a better, higher paying job so you can save more money in the long run! Good luck.

Answer 7

I don't know how much it is cost and if you are working really hard then I don't think you should do it, but you havemoney in the bank so you can use it to pay for a finnacial advisor. Well, I would think it is a waste of money so I would not get in finnacial advisor.

Answer 8

At 18 do the legwork yourself and you will learn and not be prone to paying advisors for what is essentially freely available - information. You don't need an advisor - make the call and have fun doing it. Remember, there are six asset classes and don't go for the collectables first.

Answer 9

If your not in debt, you dont really need a financial advisor. Just put 10% of each check in your savings.. Simple as that.

Answer 10

no