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 Financial Planners - Who Needs Them? There are advantages of obtaining a money manager whom is usually a professional who manages a portfolio of money for you, and presumably invests in a diversified portfolio. There is no pressure for 1) close friends 2) repeated sales/purchases of stocks or stock funds 3) no high commission of specific products temptation. Typically, the charges range between 1% and 3% of the entire amount of capital being managed for you. You can see, it is important for the financial planner to have as large a portfolio or capital accumulation as possible. The disadvantages are several, including the fact that debt repayment is usually not encouraged by a financial planner. While this is a generalization, it can be stated that the larger the estate being managed, the larger the overall commission. A financial planner who would advise a person to pay off debt, thereby depleting overall asset, would in effect be cutting into their commissions earned from managing your money. While this is not true of every Financial Planner operating in this manner, you should be aware that this is a possibility. Additionally, using a Financial Planner for real estate portfolios may not be recommended. Buying a piece of real estate may also deplete the assets that are available to manage. A final disadvantage of a money manager is that money managers typically focus on "high dollar" estates and will not take, as clients, people who do not have a minimum amount of money accumulated. The minimum amount varies, but can be between $50,000 and $100,000 as a minimum estate with the more likely being $250,000
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