Why Money Expert Ramit Sethi Hired a Financial Advisor
Written by
Nicole Spector
Edited by
Molly Sullivan
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Ramit Sethi, host of Netflix’s “How To Get Rich,” New York Times bestselling author and Host of the “I Will Teach You To Be Rich” podcast, is a trusted sage in the personal finance space and he deserves to be.
Sethi, a self-made millionaire, has combined economic acumen with highbrow academic insights into the human psyche. He gets how money works as well as how people think, and by putting these two expertises together, he forges actionable, realistic and motivational content that can help folks whether they’re just starting out with saving money or rebalancing their portfolio for the umpteenth time on the eve of their retirement.
It’s Not About ‘Needing’ a Financial Advisor; It’s About Being Safe
In a recent email newsletter sent to his subscribers, Sethi talked about the things he spends money on now, at 42, that he didn’t spend money on in his 20s. A financial advisor, along with a posture coach and an airline miles consultant, is among those things.
For Sethi, having a financial advisor is less a matter of need and more a matter of having that extra layer of safety netting and analysis. This is highly recommended if you have a large or complex portfolio, as Sethi does.
“It can be really helpful to have a second set of eyes on it to make sure you aren’t missing anything,” Sethi wrote in the newsletter. “I hired an advisor to evaluate my asset allocation and point out any blind spots I had.”
Sethi Doesn’t Pay a Percentage of Assets Under Management (AUM)
Some financial advisors work with you for a flat fee. Others work for an AUM, or a percentage of assets under management, with the most common fee being 1%. The latter business model is often frowned upon by personal finance experts because it almost always ends up being more expensive than the former. Sethi said he doesn’t pay an AUM, indicating that he works with a flat-fee financial advisor.
Sethi didn’t disclose who he works with, but he did plug Facet, an online financial advisor that provides full-service financial planning from certified financial planners for a flat annual fee.
“If you want a second set of eyes on your finances, you should check out our partners at Facet,” Sethi wrote. “With Facet you get access to a team of CFP® professionals for a flat-fee membership who can help create a personalized financial plan.”
A Financial Advisor Can Help You Meet Your Wealth Goals
In the newsletter, Sethi also talked about setting bigger milestones for himself as he gets older. He doesn’t seem to have any traces of regret around spending money at bars in his 20s — he was living it up in the moment — but he’s on to bigger and better things now.
“My philosophy is to embrace the season of life you’re in — and know what’s coming up in the next season,” Sethi wrote. Sethi has years and years left until he reaches the typical age to retire, but we don’t know his plans. He could very well see retirement as the “next season.” That chapter of life entails meeting the biggest goals of all, and a financial advisor will help Sethi meet those goals, just as one can help you, no matter your wealth status.
More From GOBankingRates
