With free budgeting apps, YouTube money gurus, and AI-powered investment platforms everywhere, it’s fair to wonder: Do you really need a financial advisor?
For some people, the answer is a clear yes. For others, it might be “not yet” — or “only for specific goals.” The truth is, not everyone needs a full-time financial advisor. But almost everyone could benefit from some level of professional financial guidance at certain life stages.
Here’s how to figure out if a financial advisor is worth it for you — based on your goals, life situation, and level of financial complexity.
What Does a Financial Advisor Actually Do?
A financial advisor helps you make smart decisions with your money. Depending on their focus and certifications, they may:
- Create custom financial plans
- Manage investments
- Help with retirement planning
- Guide tax strategy
- Assist with insurance, estate planning, and more
Some advisors are fee-only fiduciaries who act solely in your best interest. Others may earn commissions from products they sell. Some specialize in investment strategy, while others focus on holistic planning or retirement income.
The best advisors do more than recommend mutual funds — they help you make better decisions about your entire financial life.
Do You Actually Need One?
Ask yourself these questions:
1. Do you have a financial plan — or just a savings account?
If you’re just stashing cash in a bank account or guessing how much to put into a 401(k), you could benefit from a professional plan. A financial advisor helps clarify your goals, model your future, and assign purpose to your money.
2. Are your financial decisions getting more complex?
If you’re buying property, inheriting money, running a business, or juggling taxes and insurance across multiple accounts — an advisor can save you from costly mistakes.
3. Are you confident managing investments yourself?
If you love reading 10-Ks, understand risk allocation, and rebalance your portfolio quarterly, maybe you don’t need an advisor. But if investing feels overwhelming, an advisor can create and manage a strategy that fits your goals and risk tolerance.
4. Are you approaching retirement — or already retired?
This is where an advisor becomes extremely valuable. Retirement planning isn’t just about saving — it’s about how to withdraw money in a tax-efficient way that lasts for life. An advisor can help with:
- Social Security timing
- Withdrawal sequencing
- Tax-efficient asset allocation
- Estate planning and legacy strategies
5. Are you too busy or stressed to focus on finances?
Managing your money is important — but it takes time and emotional energy. If your financial life keeps getting pushed to the bottom of your to-do list, outsourcing it to a trusted professional could bring peace of mind.
When You Probably Don’t Need One (Yet)
There’s nothing wrong with DIY — especially if:
- You’re in your 20s or early 30s
- You have little or no debt
- You’re just starting to invest in a 401(k) or IRA
- You’re disciplined with money and want to learn on your own
In this case, focus on:
- Building an emergency fund
- Maxing out retirement accounts
- Learning basic investment principles
- Staying out of high-interest debt
You can always revisit the idea of an advisor as your situation evolves.
Types of Advisors (And How They Get Paid)
1. Fee-only advisors: Paid directly by clients (flat fee, hourly, or percentage of assets). No commissions. Fiduciary by definition.
2. Commission-based advisors: Paid by selling financial products (insurance, annuities, mutual funds). May have conflicts of interest. Not always fiduciaries.
3. Hybrid or fee-based advisors: A mix of both — may charge fees but also earn commissions on some products.
4. Robo-advisors: Automated platforms that create investment portfolios based on your inputs. Low-cost but limited personalization.
Tip: Always ask: “Are you a fiduciary 100% of the time?” This means they’re legally required to act in your best interest.
How Much Do Financial Advisors Cost?
- AUM Model: 1% of assets under management (typical for long-term clients)
- Flat Fee: $2,000–$10,000/year depending on complexity
- Hourly: $150–$400/hour for consultations or project-based planning
- Commissions: Varies widely (can be hidden in product pricing)
Some newer advisors offer subscription pricing for early-career clients — like $100/month for financial coaching and planning access.
Signs It’s Time to Hire One
- ✅ You’ve had a major life change (marriage, baby, inheritance, business sale)
- ✅ You’re unsure how much to save for retirement or how to invest
- ✅ You want help with tax strategy, insurance, or estate planning
- ✅ You feel anxious or avoidant about money decisions
- ✅ You want to get more serious about building wealth
How to Find a Financial Advisor You Can Trust
Start by checking credentials:
- CFP®: Certified Financial Planner — high standard of education and ethics
- RIA: Registered Investment Advisor — typically fiduciaries
- Fee-only: Look for NAPFA or XY Planning Network members
Then ask the right questions:
- How are you compensated?
- Do you have experience with clients like me?
- Are you a fiduciary at all times?
- What services do you provide beyond investments?
- What’s your communication style and frequency?
Don’t Overcomplicate It
You don’t need to be rich to hire a financial advisor — and it doesn’t mean you’ve failed at money. It simply means you want help making informed decisions that support your goals.
Even a few hours with a trusted advisor can bring clarity, peace of mind, and long-term savings.
Need Help Getting Matched?
At Trusted in Town, we connect everyday people with vetted, trustworthy financial professionals — no spam, no pressure. Whether you need a quick financial checkup or a full-service planner, we’ll help you find someone who fits your life, not just your portfolio size.
Reach out here and let us connect you with a local expert you can trust.