04/09/2017
The value of an effective financial advisor.
Here is an example of effective money management.
A client saving $100/month in interest on a debt that will now be paid off in 18 months (rather than having a continuing minimum payment for 20 years to come); the cost is $314.01 upfront and $225/month for 18 months (plus advisor fees.) A debt cost of $4044.03 vs approx $24,000 (subject to interest changes) a $19635.99 savings over 20 years.
If he had started a plan 2 1/2 years earlier, he could also have had his mortgage paid off by now (which would have cost him an additional $225 per month for 2.5 years) and he would now be saving a mortgage payment of $366.31 per month (which includes $110/month interest) for 6 years; a potential savings of $7920 in interest for a cost of $6750; a savings of $1170 PLUS he would have freed up $366.31/month for 3.5 years ($15380.82) to spend elsewhere.
While everyones assets, resources and money management skills differ, this is an actual example.
If a financial advisor can not demonstrate a benefit, it is questionable whether he/she is doing more than drawing a paycheck.
