{"id":150604,"date":"2025-09-17T21:19:09","date_gmt":"2025-09-17T21:19:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/150604\/"},"modified":"2025-09-17T21:19:09","modified_gmt":"2025-09-17T21:19:09","slug":"how-much-money-do-you-need-to-have-a-financial-advisor","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/150604\/","title":{"rendered":"How much money do you need to have a financial advisor?"},"content":{"rendered":"

Pay Dirt is Slate\u2019s money advice column. Have a question? Send it to Kristin and Ilyce here<\/a>. (It\u2019s anonymous!)<\/p>\n

Dear Pay Dirt,<\/p>\n

Is there a threshold or a minimum amount of money that a person should generally have before seeking a financial planner (as opposed to maybe consulting a fee based advisor just once or intermittently)?\u00a0Also, does it matter where the person\u2019s money is currently located, such as in CDs, savings account, retirement account\/deferred compensation? Apologies if I\u2019ve misused any terms. Thank you!<\/p>\n

\u2014Thresholds?\u00a0<\/p>\n

Dear Thresholds,<\/p>\n

There\u2019s no hard and fast rule, but people typically start considering regular financial planning help when they have around $100,000 to $250,000 in investable assets. In other words, when they\u2019ve got savings outside of emergency funds and home equity that could be strategically managed. But again, it varies. Some advisors work with less, and many folks simply manage their accounts on their own. It\u2019s less about hitting a magic number and more about whether you\u2019d feel more confident \u2014 or feel like you\u2019d make better decisions \u2014 with someone helping you think through the big picture.<\/p>\n

Yes, where your money sits matters, too. If most of your wealth is tied up in your home, 401(k), or basic savings, then a one-time consultation with a professional might be fine. But if you have substantial savings in taxable accounts, CDs, stock options, inheritance, or if you\u2019re dealing with complicated tax situations (like a freelance career or independent contracting position) then ongoing planning might be more valuable.<\/p>\n

Certain life milestones are also a good time to talk to a financial planner, even if you\u2019re not sitting on a huge pile of assets. Getting married, having a child, receiving an inheritance, changing careers, buying a home, or approaching retirement\u2026these are all moments where financial decisions can be important and you might benefit from the help of an expert. A planner can help you think through the long-term questions, avoid costly mistakes, and make sure your money is working for you the best way it can.<\/p>\n

For what it\u2019s worth, I would be cautious with a fee-based advisor, which usually means they charge fees but can also earn commissions from selling financial products, which can create conflicts of interest. Instead, look for a fee-only Certified Financial Planner (CFP). That means they\u2019re compensated only by the fees you pay for their advice, not by selling you anything, and they\u2019re held to a fiduciary standard \u2014 legally obligated to act in your best interest. Start by checking out NAPFA<\/a> or CFP.net<\/a> \u2014 both let you search for fee-only advisors who are held to those standards. You can also ask potential planners how they\u2019re compensated, whether they sell financial products, and what kind of clients they typically work with. A good advisor will help you clarify your financial goals, explain your options clearly, and work with you to make confident financial decisions.<\/p>\n

The bottom line is, if your money is starting to feel like more than just a small pile of savings, and your financial questions are getting trickier, it might be time to call in a pro.<\/p>\n

\n Please keep questions short (<150 words), and don\u2018t submit the same question to multiple columns. We are unable to edit or remove questions after publication. Use pseudonyms to maintain anonymity. Your submission may be used in other Slate advice columns and may be edited for publication.\n <\/p>\n

Dear Pay Dirt,<\/p>\n

We recently made the decision to move our elementary-aged child from public school to private school. I know very little about having a child in private school and never saw us doing this. We can afford it, but of course it\u2019s a substantial chunk of money. There\u2019s tuition, but there are also expected donations at different times throughout the year (absolutely not willing to ask friends and family to donate money to fundraisers; we\u2019ll be paying the expected family contributions ourselves). Are there any tax savings available when paying for private school? Is it ethical to take them, if so?<\/p>\n

\u2014This Is Weird<\/p>\n

Dear This Is Weird,<\/p>\n

Yes, there are ways to save. Private school tuition isn\u2019t tax-deductible, but several states offer tax credits<\/a> or deductions for approved educational expenses, which can include private school tuition. These programs vary widely, so it\u2019s worth checking your state\u2019s department of revenue or talking to a tax professional to see what applies to your situation.<\/p>\n

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529 plans are another option. These are tax-advantaged savings accounts designed to help families pay for education. You save money in the plan, that money grows, and you can use up to $10,000 per year from it to pay for qualified education expenses, which includes private school tuition<\/a>. The money you contribute to the account grows tax-free, which means you won\u2019t owe taxes on any investment gains, and qualified withdrawals aren\u2019t taxed either.<\/p>\n

Coverdell Education Savings Accounts are another way to help cover private school costs, and they work a lot like 529 plans\u2014the money grows tax-free and you don\u2019t pay taxes when you use it for things like tuition, books, supplies, tutoring, or even tech. The catch is that you can only put in up to $2,000 a year per kid, and there are income limits. The IRS has some detailed information about these accounts here<\/a>, but some people use them alongside 529s.<\/p>\n

As for ethics, these aren\u2019t some kind of loophole. You\u2019re participating in a system designed to support your exact situation. Taking advantage of the relief available to you doesn\u2019t make you greedy or dishonest\u2014these tools and plans are designed to help families like yours manage education costs. Keep in mind that tax laws change often, so verify the latest rules<\/a>. And if you can swing it, it\u2019s a good idea to talk to a tax professional to maximize your benefits.<\/p>\n

\u2014Kristin<\/p>\n

More Money Advice From Slate<\/p>\n

We are a gay couple updating our wills. Over the years, we\u2019ve had some nieces and nephews on both sides of the family who we have helped out financially; always sent gifts to for Christmas, birthdays, and life events; and (most importantly) enjoyed their company when they came to visit us or vice versa. There are 13 nieces and nephews altogether, all of them in their late teens or 20s. The issue is that seven of them have always acknowledged us, thanked us for our gifts, invited us to events, etc., while with the other six it\u2019s radio silence.<\/a><\/p>\n

The latest sex, parenting, and money advice from our columnists delivered to your inbox three times a week.\n <\/p>\n","protected":false},"excerpt":{"rendered":"Pay Dirt is Slate\u2019s money advice column. Have a question? Send it to Kristin and Ilyce here. (It\u2019s…\n","protected":false},"author":2,"featured_media":150605,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[8786,64,63,99,186,184,185],"class_list":{"0":"post-150604","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-advice","9":"tag-au","10":"tag-australia","11":"tag-business","12":"tag-finance","13":"tag-personal-finance","14":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/150604","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=150604"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/150604\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/150605"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=150604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=150604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=150604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}