{"id":889,"date":"2020-08-28T21:21:32","date_gmt":"2020-08-28T19:21:32","guid":{"rendered":"https:\/\/wealthymefs.co.za\/?p=889"},"modified":"2020-10-22T15:55:18","modified_gmt":"2020-10-22T13:55:18","slug":"everyone-needs-a-financial-adviser-not-just-the-wealthy","status":"publish","type":"post","link":"https:\/\/wealthymefs.co.za\/?p=889","title":{"rendered":"Everyone needs a financial adviser, not just the wealthy"},"content":{"rendered":"\t\t
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By Isabelle Coetzee<\/p>\n

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If you make a modest living and you don\u2019t have a lot of disposable income, does it make sense to hire a financial adviser to assist you with your finances?<\/p>\n

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JustMoney reached out to local financial advisers to find out who can benefit from a financial adviser\u2019s services, and how you will be billed for this.<\/p>\n

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Tip: Are you putting money away each month? Start investing in a unit trust today by\u00a0<\/em><\/strong>clicking here<\/em><\/strong><\/a>.<\/em><\/strong><\/p>\n

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How much should you earn before hiring a financial adviser?<\/strong><\/p>\n

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According to Reagan Mitchell, managing director of WealthyMe, whether you earn R1,000 or R100,000 per month, having access to financial advice will allow you to make informed decisions for your present and future financial goals.<\/p>\n

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\u201cThe way you access financial advice as a low-income earner won\u2019t be the same as someone who earns R100,000 per month. Similarly, the cost of financial advice will also differ because of the level of complexity,\u201d says Mitchell.<\/p>\n

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He explains that someone earning R1,000 per month may only need risk protection advice, whereas someone with a more complex portfolio will have a variety of needs.<\/p>\n

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According to Mike Wood, managing director of Wealth at the Apio Group, independent advisory firms do not choose their clients based on the size of their portfolio.<\/p>\n

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\u201cThey work with a client to ensure that their overall portfolio is always managed in the most cost-effective and tax-efficient manner while working towards an end goal,\u201d says Wood.<\/p>\n

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How much does a financial adviser cost?<\/strong><\/p>\n

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Mitchell says that in South Africa, financial advice has not been productised and as such the cost of advice is usually covered within the financial products in a client\u2019s portfolio.<\/p>\n

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He emphasises that the commission payable to a financial adviser is recovered from the customer\u2019s premium payments and that the cost of advice is not fixed.<\/p>\n

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\u201cIn other words, the more you spend on financial services rendered by a financial adviser, the more you will pay for the advice. But remember, this is included in your premium already,\u201d says Mitchell.<\/p>\n

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Ana Scott, executive financial planner at Momentum, confirms that the same applies to the Momentum advisors. However, she explains that in other countries, such as Australia and the UK, financial planners charge a consulting fee.<\/p>\n

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\u201cIn these countries the top qualified financial advisers may charge according to experience, time in the industry, and studies completed, which often results in only the wealthy engaging,\u201d says Scott.<\/p>\n

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How are financial adviser fees structured?<\/strong><\/p>\n

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Mitchell explains that the total cost of making use of a financial adviser consists of:\u00a0<\/p>\n

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