Think Financial Planners Are ‘Only for the Wealthy’? Here’s Why That’s a Myth

Misconceptions about cost are keeping millions who need it most from seeking financial advice.

One persistent myth about seeking professional financial advice is hurting the people who stand to gain the most.

Nearly 1 in 4 Americans who don’t have a financial advisor say they believe they don’t have enough money to need a financial professional, according to a report released Thursday by the insurance firm Primerica. Similarly, 35% reported not having an advisor because they believe the cost would be too high.

“Many families want help reaching their financial goals but sell themselves short due to misconceptions that financial guidance costs too much or is only meant for those with more money,” Glenn Williams, CEO of Primerica, said in a news release. “These assumptions can hold families back.”

Primerica’s survey focuses on low- to middle-income families, polling over 850 U.S. adults with earnings between $30,000 and $130,000. The quarterly series began in 2020, and the firm’s latest installment adds to a growing body of research about the phenomenon.

Last year, a report from Talker Research and Zoe Financial found that only 26% of Americans have a financial advisor — with the biggest deterrent being the myth that advisors are for affluent people, the report stated.

“People still think financial advice and investment management are only for the wealthy, which can discourage them from seeking guidance,” Andres Garcia-Amaya, CEO of Zoe Financial, said in the report.

Financial advisors ‘especially valuable’ for low-income families

The lower one’s income, the less likely they are to seek financial advice from a professional, according to a recent Gallup survey.

Despite this trend, experts say that lower-income and underserved communities disproportionately benefit from professional advice.

A 2025 study found that “holistic” financial advice — which includes aspects beyond just investing, such as debt and savings — benefited the typical family by $4,384 per year, or 7.5% of annual income.

“More importantly, this type of advice can be especially valuable for those with lower income who historically have been underserved,” wrote Shlomo Benartzi, a behavioral economist and the study’s author, noting that the benefit for low-income households “is potentially up to 10 times larger” than the standard benefit.

What to know about financial advisors — and fees

Not all financial advisors are created equal. Many focus only on investment advice and management, while others provide a broad range of services from basic budgeting to estate planning and some use the title but primarily sell specific financial products, such as insurance policies.

An alphabet soup of different certifications and designations only adds to the glut of options facing folks who are searching for the right advisor.

For general, trusted financial advice, the certified financial planner, or CFP, designation is considered the gold standard.

CFPs undergo extensive training and are required to adhere to strict ethical standards. They can provide a broad range of financial planning services and, crucially, must act as a fiduciary, meaning they put their clients’ financial interests before their own. That said, CFPs can sometimes be among the most expensive options.

In 2024, Money surveyed over 1,000 CFPs to determine the best financial planners in the U.S.

Our survey found that about 53% of CFPs do have income or asset requirements when taking on new clients, meaning they tend to advise wealthier clients. However, two-thirds of them said they provide pro bono services to underserved clients, essentially waiving that requirement.

If compensation is required, here’s a quick rundown of common fee structures for all planners.

• Hourly rate: Similar to attorneys, some planners charge by the hour.

• Flat or annual fee: Financial advisors often charge between 0.5% to 1.5% of your assets under management (if applicable). So, for instance, if your assets total $100,000, you would have to pay between $500 and $1,500.

• Commissions: Advisors may collect commissions on the financial products they recommend.

• Fixed rate: To create a full financial plan, advisors or financial planners could charge a fixed fee depending on the complexity of your finances and the scope of the plan.

• Retainer: More common for clients with complex finances, some advisors work on a retainer model and charge either monthly, quarterly or annually — regardless of whether you’re actively using their services.

An advisor might also combine different types of fee structures.

When dealing with commission-only advisors, some experts recommend caution. While the lack of upfront fees may seem like a perk, the likelihood of conflicts of interest runs high. (None of the CFPs in Money’s survey are commission-only.)

“Different payment structures might create different incentives,” Alan Rosca, a securities attorney, previously told Money. “If somebody is paid only to sell investments, it means if he doesn’t sell you anything, he doesn’t make any money.”

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