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I don’t know who needs to hear this, but you don’t have to be super wealthy to hire a financial advisor.

This recently came up on a walk with our 22-year-old nanny, who was telling me she couldn’t wait to have money so she could hire someone to help her figure out her budget. “If I tried to hire someone, they would look at my bank account and laugh.”

The same thing happened when I mentioned to a friend that we had just started working with a money manager. “Wow,” she said. “Business must be good! I can’t wait to get to that point.”

I don’t know when it started, but somehow everyone has gotten it in their heads that financial advisors are only for the wealthy, like a Birkin bag or country club membership.

The good news is you can get financial help before your ship comes in. It might even help your ship arrive a little sooner.

Who Needs a Financial Advisor?

Let’s debunk this myth: Financial advisors are not just for the wealthy. They are for anyone who wants to improve their financial health. Whether you’re drowning in student loans, saving for a home, planning for retirement, or simply trying to make sense of your finances, a financial advisor can be your guide.

There are all kinds of financial advisors.

The first step in finding the right financial advisor for you is identifying your specific financial needs.

Are you looking for someone to help invest your nest egg? Get your debt under control? Develop an extensive estate plan with complex tax implications? Or maybe you just want a one-time assessment of your retirement readiness.

Great! These are all things a financial advisor can help with. Services vary from advisor to advisor, and by understanding what kind of help you need, you can narrow down your search to someone who specializes in that area.

Here are just a handful of services a financial advisor may provide:

Investment Advice: Guidance on where to invest your money to maximize returns while managing risk; build a diversified portfolio tailored to your risk tolerance, financial goals, and time horizon.

Debt Management: Develop strategies to help you pay down and manage debt more efficiently; could involve consolidating loans, negotiating lower interest rates, or setting up a structured repayment plan.

Budgeting Help: Develop a realistic budget that aligns with your income and expenses; track spending, identify areas where you can cut costs, and ensure you’re saving adequately for future needs.

Insurance Coverage: Review your current insurance policies and recommend necessary coverage based on your personal and financial situation, including health insurance, life insurance, disability insurance, and long-term care insurance.

Tax Planning:Develop tax-efficient strategies to reduce what you owe; maximizing deductions and credits, strategic investment decisions, and retirement planning techniques that offer tax benefits.

College Planning:Develop strategies to save for college, such as 529 plans, Coverdell Education Savings Accounts, and other tax-advantaged accounts; provide guidance on financial aid, scholarships, and other resources to help manage costs.

Retirement Planning:Determine how much you need to save, select appropriate retirement accounts, and choose investments that align with your retirement goals; provide strategies for withdrawing funds in retirement to minimize taxes and ensure your savings last.

Estate Planning:Create a comprehensive estate plan, including wills, trusts, and other legal documents; ensure your assets are distributed according to your wishes, minimize estate taxes, and avoid probate.

As you can see, financial advisors provide services for all different stages of life, not just “how can I use my country club donations to offset the taxes on my new jet.” Ultimately, we could all probably benefit from hiring a financial advisor at multiple points of our lives.

While working with a financial advisor isn’t free, the benefits you reap often outweigh the costs. Different types of advisors have different costs, but on average, you can expect to pay around $100 to $200 an hour. If your advisor is managing assets for you, you can expect to pay about 1% of your “assets under management” (AUM) per year. There are also some advisors who are compensated based on commission, as well as robo-advisors, which typically provide straightforward investment services, but at a very low rate.

You’ll also want to know whether your advisor is a fiduciary or not. Fiduciary advisors are legally required to act in your best interest, unlike non-fiduciary advisors who may have conflicts of interest. While many non-fiduciary advisors will still give you good advice that is in your interest, it’s not a legal requirement. Just something to consider in your search.

By knowing how much you can afford and the type of advisor you need, you can make a more informed decision.

Finding and Evaluating Financial Advisors

With all this information in hand, you can start your search for a financial advisor. This could involve asking for recommendations from family and friends, or doing a search online for advisors who fit your needs. There are also a number of helpful online databases, including…

• National Association of Personal Financial Advisors (napfa.org
• Garrett Planning Network (garrettplanningnetwork.com)
• XY Planning Network (xyplanningnetwork.com), which focuses specifically on advisors who work with younger clients
• The CFP Board (cfp.net), which includes a list of all advisors who have earned the certified financial planner (CFP) designation

When evaluating potential advisors, be sure to check their credentials and disciplinary actions using tools like FINRA’s BrokerCheck. You’ll also want to ensure whether or not they are fiduciaries and understand their fee structures.

Asking the right questions can help you determine if a financial advisor is the right fit. Here are some questions to consider:

1. Are you a fiduciary committed to putting my best interests first? Are there any instances where you’re not a fiduciary?

It's important to know if they are a fiduciary, which means they are legally required to always act in your financial best interest, even if they could generate a fee by selling you a commission-based product.

2. What services do you offer? Who are your typical clients? Do you have any experience with what I’m looking for?

Check if they provide what you need, whether it's retirement planning, investment advice, or tax help. It may also help to know whether they have experience working with people in your financial situation.

3. What's your financial planning strategy? How often will we meet?

Dive into their methods and strategies to see if they align with your financial goals and comfort zone. It's important to feel comfortable sharing what you really think; otherwise, your advisor won't be able to craft a plan that truly works for you.

4. How do you earn your fees? Do you have minimum account requirements?

Understanding how they get paid and whether they have any potential account requirements can help you make sure their services align with your budget.

Choosing a financial advisor is a significant decision that requires careful consideration. The right advisor can help you achieve your financial goals and provide peace of mind knowing your financial future is in good hands. By following this step-by-step guide, anyone — including our nanny — can be well on their way to finding the right financial advisor for their needs.