So for those who may be reading, an ELP is Dave Ramsey’s “Endorsed Local Providers”. These financial advisors (realtors, whatever) pay Dave to be on his list, so that when he refers people on his radio show to go check out the list of ELP’s on his website, those financial advisors will show up. I think it’s good to be aware of the conflict of interest that Dave has to suggest you use these providers.
That said, there are really two types of financial advisors. There are “fee only” financial advisors who are fiduciaries (they are legally bound to operate in your best interest). And yeah, these guys generally won’t work with you unless you’re well into the six figures. Because they charge 1% per year or less of assets under management. So if you have $20,000 to invest, that’s $200/year to them. That’s not enough to pay rent and stuff.
Then, there’s everyone else, which can run the gamut from commission based financial advisors who will hit you for way more than 1% to straight up insurance salesmen who call themselves financial advisors. Both of these are definitely to be avoided.
And when I get asked “how do I pick a good financial advisor” my answer is “I don’t know except to learn enough about investing to tell them apart, at which point you don’t need one anyway.”
I like Dave. I don’t know of a better way to get out of debt. But I heard a wise man say “get out of debt with Dave Ramsey, invest with Jack Bogle” Bogle is the founder of Vanguard and the creator of the first index fund.
So TL;DR: Don’t get a financial advisor. Learn a bit about investing in index funds, then open an account with Vanguard, Fidelity, Schwab, Betterment, Acorns, etc. Then do it yourself. You’ll be richer for having done it that way