How Much Money Do You Need for a Financial Advisor?

Financial advisors help manage investments and create strategies to meet your goals. You don’t need to be wealthy to hire one, but asset requirements vary greatly by advisor, services, and the clients they work with.

In this article, you’ll learn why advisors set minimums and what typical requirements look like. We’ll also explain how services differ across wealth levels, and how to decide if you’re ready to hire a financial advisor.

What Are Minimums, and Why Do They Exist?

Account minimums are common in the financial advice industry. They refer to the lowest amount of investable assets or net worth an advisor requires before working with a client. You’ll usually find them alongside investment management, but they can also be present for financial planning services.

Minimum account thresholds contrast across firms and services, from $25,000 to $1 million and above. These minimums directly determine which clients a professional or firm serves.

“Each advisor will specialize in a certain type of client,” says Jason Bernat, president and CEO at American Financial Services. Whether a firm or expert prefers to work with beginning investors, affluent clients with $250k portfolios, or high-net-worth (HNW) individuals or families with $1 million or more, minimums help define parameters for their specialty and set expectations for both parties.

Minimums also exist for advisors to maintain profitability. According to Bernat, “An advisor spends a significant amount of time working with and for a client, so smaller accounts are just not profitable for a business model.” While some advisors serve a wide range of wealth tiers, Bernat notes it’s more likely for them to “cater to your more affluent investors.”

Not all types of financial advisors use minimums, however. Some flat-fee models (hourly, retainer, etc.), which are especially customary with financial planning or one-time projects, offset the profitability needs of asset-based relationships. This allows advisors to work with a wider range of clients of different net worth and is an option for those with fewer assets. That said, fixed-fee schedules can also vary broadly and may appear more expensive upfront than AUM costs.

Some advisors waive their minimums in specific cases at their discretion. This can be the case if they sense that a client has the potential to grow their wealth. Bernat notes that he may also do so “when it comes to client referrals or family and friends,” but that “depending on the type of investment, there are times [he] cannot waive the minimum.”

Typical Financial Advisor Minimum Ranges

As mentioned, financial advisor minimums can vary drastically. They can be distinctive between advisors, but also across various services, account types, and programs at a given firm.

Generally, minimum investment thresholds will help advisors and prospective clients identify which types of investors they serve. By extension, this also influences which services they should provide. Despite normal fluctuations in requirements, here are the typical ranges and coinciding services you might see:

$25k to $100k

A $100,000 or less assets under management (AUM) threshold is especially common for firms that serve up-and-coming investors. Services at this minimum may include:

• Robo-advisory.
• Basic non-discretionary or discretionary portfolio management.
• Financial planning.
• Hybrid approaches combining automated advisory and either remote or in-person advice.

Per Bernat, “If you are a smaller client of the firm your portfolio will probably be more digitally created and streamlined, and you won’t get as much time with your advisor.” The advice can still be helpful and important for shaping growth; however, because your portfolio isn’t significant, firms often devote fewer resources to this range.

$100k to $500k

Clients with between $100,000 and $500,000 exhibit room to grow and hold more funds to invest. Therefore, services at this stage might often include:

• Standard investment management (often both discretionary and non-discretionary).
• Diverse portfolio allocations, either with model portfolios or customized to your needs.
• Comprehensive financial planning.
• Access to a dedicated professional.

$500k to $1M+

This range represents most mass affluent investors. Clients with over $1 million to invest fall into the HNW category, which is often the preferred AUM tier for wealth management firms.

Clients in the $500,000 to $1 million range generally receive:

• Highly specialized financial guidance.
• Customized portfolio advisory.
• Increased access to advanced asset classes and allocations.
• Access to a range of experts for various needs, including legal, tax optimization, and estate planning.

“An affluent or accredited investor is going to receive a more concierge type of experience,” says Bernat. “That client will receive more access to specialists such as attorneys, CPAs and alternative investments. Their investment portfolio will be customized from beginning to end and they will usually have more one on one contact with their advisor.”

Once an individual crosses the $30 million mark and becomes ultra-high-net-worth (UHNW), they may receive even more tailored advisory solutions. This might often include utilizing a family office service, either at a full-service wealth management firm or a dedicated one.

When It Makes Sense to Hire an Advisor

At what level of assets or income does it make sense to hire a financial advisor? While the true answer depends on your level of comfort managing and planning your finances, it often becomes more beneficial when your situation is complex.

Bernat highlights that the minimum “assets needed to work with an advisor begin around $100,000,” but ultimately it “will depend on the advisor’s requirements and the stage of life that you are currently in.”

If you can meet the minimums for an advisor, it will be up to you to decide if you need to seek financial guidance. Portfolio size can be a good indicator, but factors such as income and your personal circumstances and goals can play pivotal roles as well.

“People always think they need a million dollars to seek financial advice,” explains Bernat. “There are all types of financial advice, not just investing. Everyone has to start somewhere.”

Advisors can add value not just by managing complicated investment portfolios, but by walking you through various areas of your finances. Steps such as retirement, buying a home, getting married, or planning your estate are all aspects a professional can help with. This is true, even if you don’t have a prototypical wealthy portfolio.

Below is a checklist to help you evaluate your readiness to hire an advisor:

• You have investable assets.
• You need guidance on retirement, taxes, or investing.
• You’re experiencing a significant life event (marriage, business succession, inheritance, etc.)
• You’re a business owner or entrepreneur.

Finding a Financial Advisor for Your Level

Deciding if you need a financial advisor is both an important and personal decision. It’s also not one to take lightly, as you’re entrusting a person to deliver objective and influential advice and expertise that could shape your future.

To find the right financial advisor for your stage of wealth, it’s critical to know what to look for. First, you should prioritize working with a fiduciary, a professional legally required to put your interests first when recommending strategies or investments. They often hold reputable designations such as Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), or Chartered Financial Analyst (CFA).

It’s also vital to ensure that an advisor’s fees and minimums align with your financial situation. For example, if you’re just starting out or have assets below $100k, you may want to begin with an hourly planner or robo-advisor. Conversely, if you have a larger portfolio, you may want to explore firms that offer comprehensive investment management and wealth advisory solutions.

The table breaks down of typical asset levels, the types of advisors you might work with, and the services they usually provide:

Asset Level / Minimum	Advisor Types	Typical Services Offered
Under $50K	Robo-advisors, hourly planners	Automated portfolios, budgeting help, basic planning
$50K–$100K	Hybrid robo and traditional advisors, independent firms	Standard portfolio management, retirement planning, goal-based strategies
$100K–$1M	Full-service and regional firms	Comprehensive planning, tax strategies, investment management
$1M+	Wealth management firms, family offices	Complex investment advisory, estate planning, advanced tax strategies, alternative investments, access to a team of professionals

At any asset level, there are options to compare and weigh against each other. If you’re ready to begin your search for an advisor, we recommend using our free matching tool. After answering a few questions about your goals and situation, it will pair you with a fiduciary advisor in your area or online.

If you’d like to explore robo-advisory, you can also check out our comprehensive list of reviews on the top firms in the nation. We provide an overview of each company’s minimum investments, services, and fees, among other details.