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Countless Americans are chasing the dream of one day becoming rich. But at some point in the race, many of them come to find there’s an important difference between being rich and feeling rich.
Let’s say you’re a surgeon, married, in your late 40s and your household brings in a tidy $573,000 each year. Considering that the median income in the U.S. (adjusted for inflation) was $83,730 in 2024 — based on statiscs from the Federal Reserve Bank of St. Louis — you’re doing pretty well. More than good.
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At this point, you shouldn’t feel broke — especially if you’re working with a financial advisor who should be helping you to make smart decisions to use all that money as wisely as possible.
But if you are struggling, it’s worth looking at whether your advisor could be doing you a disservice, either by steering you in the wrong direction or by charging you unreasonable fees.
Not all financial advisors are created equal
Whenever you place your finances in the hands of someone else, you take a risk. Thus, it is very important that you place your hard-earned money in the hands of someone you trust.
You can connect with vetted financial advisors through FinancialAdvisor.net, a free online service that helps you find a financial advisor who can help you create a plan to reach your financial goals. Just answer a few questions and their extensive online database will match you with a few vetted advisors based on your answers.
You can view advisor profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
First and foremost, if your advisor isn’t a fiduciary, you could have a problem. A fiduciary has a legal duty to act in your best interest and give you advice that’s right for you. Other financial professionals do not have the same strong legal obligations.
It may come as a surprise, but not all people who bill themselves as financial advisors have fiduciary status. Some professionals, like Certified Financial Planners (CFPs), are held to a fiduciary standard but many individuals can offer financial advice even if they don’t have this special designation.
You’ll also want to see what licensing your advisor has. Ideally, you’ll want someone with independent certification, such as a CFP or a chartered financial analyst. Advisors who are licensed by independent agencies are typically held to higher ethical standards and have had to undergo specialized training and complete exams.
Before hiring an advisor, it is also worth checking if they are a fiduciary. This means they are obligated to choose investment products and give financial advice that is in the best interest of the client. This step can help protect you from being sold on products by an advisor that you may not need or that may not be best for you in the long term.
Advisor.com connects you with accredited fiduciaries with substantial experience under their belts, and are registered with either the federal or state securities administrators.
Finally, you’ll want to find out how your advisor charges for their services. If they work on commission, this can create a conflict of interest because they may be tempted to steer you into investments that earn them the most money, even when those investments aren’t actually the best ones for you.
Your advisor will ideally be fee-only and will charge you a predetermined, agreed-upon rate for managing your assets. AdvisoryHQ reports that the average advisor fee for someone with $1 million in assets came in at around 1.02% in 2023. If your advisor is charging much more than that, their fee structure may be unfair.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
What to do if you suspect your financial advisor is ripping you off
If you’re concerned about whether your advisor is mismanaging your money, ask to see your account statements, a summary of your transactions, and a summary of what you’ve paid to your advisor.
If they’re unwilling to provide the documents you’re asking for, this is a major red flag and you may want to get legal help to recover your records and potentially take action if fraud is found.
Financial advisors found through Advisor.com are upfront regarding their charges — typically billing a flat fee or a percentage of the total assets under management.
Once you have your financial details in front of you, review the information carefully to see where your money is going, what fees you’re paying, and what ROI you’ve earned. Ask any questions you have to get to the bottom of why you don’t feel rich when you’re making so much.
Ultimately, whether it’s lifestyle decisions you’ve made or bad investments, you should have plenty of money to save, grow your wealth and live a comfortable life on an income of $573,000. If you aren’t doing that now, consider looking for a different licensed, fee-only advisor who can help you make a better plan for your financial future.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.