Question: I’m broke. I’m 65 and I’m going to retire at 69. I don’t have a 401(k) and I only have $6,000 in savings. Can a financial adviser even help me?
Answer: Yes, you’re in a tough spot financially, but there are people who can help you. (Looking for a new financial adviser? This free tool can match you to a fiduciary adviser.) Here are some options — some of them free to you — pros told us you may want to consider:
Pro bono financial adviser
If it’s difficult for you to afford fixed-fee financial services (these can run anywhere from $150 to $450 for hourly services and between $2,500 and $10,000 for a flat-fee, one-time financial plan) you should consider seeking an adviser who works pro bono. Note, though, that these advisers typically only work with people with very limited assets.
Have an issue with your financial adviser or looking for a new one? Email [email protected].
To find a financial adviser who is willing to work on a pro bono basis, you can search for pro bono on XY Planning Network’s Find an Advisor portal. Other options include The Financial Planning Association and the Foundation for Financial Planning’s Pro Bono Planner Match site.
Moreover, the CFP Board offers pro bono financial planning to those in need. “Many CFP professionals dedicate a part of their time to serving the community to those who would not typically be able to afford financial advice,” says Jordan Gilberti, senior leader planner at Facet. Adds Gilberti: “It’s also extremely useful for many just to have that accountability partner to help you set goals, no matter how small and stay on track with them.
Non-profit credit counselor
You may want to consider a non-profit credit counselor, says Howard Dvorkin, a certified public accountant and chairman of Debt.com: “In my experience, good people with few savings don’t need a private sector investment professional. They need a nonprofit credit counselor to help them create a household budget and get out of personal debt,” says Dvorkin.
Additionally, the Association for Financial Counseling & Planning Education offers pro bono counseling, the National Foundation for Credit Counseling provides free financial counseling for those with debt and other financial burdens and Money Management International offers free online financial counseling for people experiencing financial hardships such as foreclosure and eviction, reverse mortgages and bankruptcy counseling.
Federal, state and local resources
Josh Trubow, certified financial planner at Sensible Financial, says that in circumstances where there are no savings and limited capacity to earn, taking advantage of federal, state and local resources is important. “A social worker might be better suited to help find the right resources as advisers don’t come across this type of situation often and are likely more limited in terms of knowing what’s available,” says Trubow.
Free consultation with a financial adviser
If you do want to go down the traditional financial adviser route, know that a traditional big firm that earns their money by managing investments will likely not be able to assist you due to the lack of assets.
“Fortunately, there’s a new subset of financial advisers who are offering financial planning services for a fixed fee, and they can work with a wider range of people, including those without any investment assets to begin with,” says certified financial planner Jason Co of the Co Planning Group.
The good news is most financial planners offer free consultations where they can gather more information on a prospective client. “While there may not be enough to invest, a financial planner may be able to weigh in on things like budgeting, social security and pensions. The key is to find a planner who won’t charge anything for the initial consultation,” says certified financial planner Ryan Haiss at Flynn Zito Capital Management. Then, if there’s a plan to implement a review process with the client, the planner can determine if and how they’ll be compensated. (Looking for a new financial adviser? This free tool can match you to a fiduciary adviser.)
DIY
It’s also possible that you can start building a financial foundation on your own right now. “Build up an emergency fund that can cover at least 3 months of your expenses, avoid taking on debt, look for ways to increase your income and prioritize saving a more significant percentage and begin investing by utilizing a Roth IRA account with a robo adviser which can be started with just one dollar,” says certified financial planner Alonso Rodriguez Segarra at Advise Financial.
Your employer
It’s also worth checking what benefits your employer may offer. “Many companies these days are offering financial planning as an employee benefit. Contacting your HR department to see what kind of options your company provides can be a great first step,” says Gilberti.
Have an issue with your financial adviser or looking for a new one? Email [email protected].
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