Why should those with low income get financial advice?

1 min read by Unbiased team Last updated October 4, 2024

Learn what benefits advisors offer low-income earners, how to find the right professional for your needs, and what questions you should ask.

Summary 

  • Regardless of your income level, a financial advisor can offer valuable advice. 

  • A financial advisor can help you achieve your financial goals successfully. 

  • Learn the right questions to ask to find an advisor that’s right for your needs. 

  • Advisors with credentials such as Certified Financial Planner are the best option. 

What is a financial advisor for those with low income? 

A financial advisor provides personalized guidance on money matters. 

Financial advice for low-income earners focuses on budgeting, debt management, and maximizing limited resources.  

For low-income seniors, the emphasis shifts to retirement income planning, investment management, and estate planning. 

How can a financial advisor help someone with low income? 

Financial advisors can greatly assist low-income earners by offering counsel on navigating financial challenges and securing a more stable future.  

They can create tailored budgets, develop comprehensive financial plans, and set realistic short and long-term goals, ensuring that individuals make the most of their limited resources at any stage of their lives.  

It may seem counterintuitive for those with limited funds to seek financial advice or pay an expert. However, in the long run, the benefits of financial advice for low-income earners far outweigh the drawbacks of not consulting with an expert at all.  

Expert advice can help you save money, manage your money correctly, and maximize any investment opportunities that arise.  

What are the advantages of using a financial advisor as someone with a low income? 

The following are some of the main advantages of using a financial advisor for low-income individuals or families: 

  • Budget optimization: Make every dollar count with a tailored budget that prioritizes needs and maximizes resources. 

  • Emergency preparedness: Build a safety net to cover unexpected expenses and avoid further debt. 

  • Future-focused investing: Explore suitable investments to grow your money, even with a low income. 

  • Government assistance: Access all available benefits and programs to enhance your financial stability. 

  • Debt relief: Develop a plan to tackle debt through effective strategies and negotiations. 

  • Goal attainment: Create a clear path towards your financial dreams, from buying a home to retirement planning. 

  • Peace of mind: Gain confidence and reduce stress with a professional managing your financial well-being. 

What questions should I ask a financial advisor, as someone with low income? 

When seeking a financial advisor for low-income advice, the following questions should be asked:  

1. Experience and focus 

  • Do you have experience working with clients who have low incomes?  

  • Can you offer specialized financial advice for low-income earners such as myself? 

2. Fee structure and affordability 

  • How do you charge for your services? 

  • Do you have any flexible fee options or sliding scales for clients with limited incomes? 

  • Are there any additional costs or hidden fees I should be aware of? 

3. Services offered 

  • What specific services do you offer that would be most beneficial to me, given my low-income situation? 

  • Can you help me create a budget and track my expenses? 

  • Will you assist me in developing a plan to reduce my debt? 

  • Can you guide me on saving and investing, even with limited funds? 

  • Will you help me identify and access any relevant government assistance programs? 

4. Communication and accessibility 

  • How often will we meet or communicate to review my financial plan and progress? 

  • How can I reach you if I have questions or concerns between our scheduled meetings? 

5. Commitment and long-term relationship 

  • Are you committed to working with clients who have low incomes over the long term? 

  • Will you be available to support me as my financial situation evolves and my goals change? 

6. References and testimonials 

  • Can you provide references or testimonials from other clients with low incomes who have benefited from your services? 

How do you find the best financial advisor for those with low income? 

Finding a financial advisor for low-income people, including seniors, is easier than many think. In fact, several avenues exist to secure sound financial advice: 

Non-profit organizations like credit counseling agencies and Community Development Financial Institutions (CDFIs) offer invaluable budgeting assistance, debt management plans, and financial education, often at little to no cost.  

If you're looking for a cost-effective way to start investing, consider robo-advisors.  

These digital platforms provide automated investment management at a fraction of the cost of traditional advisors.  

Pro bono services, such as those provided by the Financial Planning Association, are also an option. 

However, for those seeking more personalized guidance, fee-based financial advisors for low-income situations are the best route to take - and this is what to look for in an advisor: 

  • Experience with low-income clients: Ensure the advisor has experience working with clients who have similar financial situations and goals. 

  • Relevant certifications: While not mandatory, certifications like Certified Financial Planner (CFP), Accredited Financial Counselor (AFC), or Chartered Financial Consultant (ChFC) demonstrate a commitment to professional development and ethical standards. 

  • Fee transparency: Understand the advisor's fee structure and ensure it's affordable and aligns with your budget. 

  • Fiduciary standard: Work with an advisor who is an Accredited Investment Fiduciary (AIF), meaning they are legally obligated to put your best interests first. 

Find the right financial advisor 

It’s never been easier to find a financial advisor to help you achieve your short-term and long-term goals.  

No matter your income level, you can find an advisor to help on your journey to financial freedom.  

Let Unbiased match you with a financial advisor for expert financial advice customized to your earnings and stage of life.  

Writers

Unbiased team

Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.