Online Financial Advisors and Who Would Benefit from One

Not everyone needs a financial advisor. Even though most financial advisors will tell you this is not true. Typically, a person will not need a financial advisor unless their situation is overly complicated or they have amassed a certain amount of success already. There are three main types of financial advisors. And if you are not just starting out then an online financial advisor might be the one that you pick. So let me tell you about online financial advisors. 

What is an Online Financial Advisor?

An online financial advisor is a step above a robo advisor in terms of sophistication. An online financial advisor is a financial advisor (an actual person) that you can either call or chat online with that will help you with your investment decisions. The fees for online financial advisors are usually higher than robo advisors but less than in-person financial advisors. Typically the fees will be less than 1% of the total amount that you have invested with them or based on a subscription payment.

Online financial advisors are good for financial situations that are more complicated than simply dumping your money into an account and watching it grow. If you need some simple and basic estate planning, financial guidance, and investment management then an online advisor might be right for you.

Online advisors typically have relatively low minimum amounts to start investing with them. I have pretty consistently seen a $25,000 amount as the minimum amount to start. But I have also seen ones that are $100,000 and some that are $0. 

Pros and Cons of Online Financial Advisors

The good of online financial advisors:

1. You generally will get a dedicated person to talk to who will be “your” financial advisor.
2. There are a lot of different options to choose from.
3. Fees are generally pretty reasonable compared to some in-person financial advisors

The bad of online financial advisors:

1. A minimum of $25,000ish can be daunting if you are just starting out.
2. You never get to sit kneecap to kneecap with your financial advisor.

Final Thoughts

This isn’t super complicated. But often we tend to overthink things (especially when it comes to health or money). But if you are in need of a financial advisor and you are not just starting out with your saving and investing journey, you might want to look into a good online financial advisor.

You can do this!

Until next time!