Should I Get a Financial Advisor? And, Is It Worth It?
- Michael Urch
- 5 days ago
- 13 min read
Updated: 1 day ago
Should you get a financial advisor? If you have $500,000 or more in investable assets and you're nearing retirement, you should get a financial advisor.
You should also consider working with a financial advisor if you're worried that you might make rash decisions when the market dips. If you know that you tend to make emotional decisions, working with a financial advisor who will help you avoid wealth-diminishing mistakes can be the difference between a comfortable retirement and one that's strained.
But why is working with a financial advisor so important? Is it worth it? And when should you look for a wealth management firm instead of just a solo financial advisor? I'll cover that and more in this post.
As a CERTIFIED FINANCIAL PLANNER,™ Michael advises his clients on insurance planning, investment planning, retirement income planning, tax planning, and estate planning. Michael prides himself on being a professional advisor who puts planning before products.
When Does Managing Your Own Money Become Too Much?
In general, the more wealth you accumulate, the more complex your financial situation becomes.
A helpful rule of thumb I often share is this: once you have around $500,000 in investable assets, things usually start to get more complicated than most people want to handle on their own.
Why that number? At 360, we use it internally as a benchmark. Anyone with $500,000 or more in investable assets automatically gets financial planning included as part of our service. That’s because at this level, your financial situation often starts involving multiple accounts, tax planning strategies, estate planning considerations, and more nuanced investment management decisions.
In general, the moment you start to feel uncomfortable managing your own investments is when you should get a financial advisor.
Table of Contents
Is Now the Right Time for You to Hire an Advisor?
Here are two key questions I ask people when they’re trying to decide if they should hire an advisor:
How much time are you currently spending making financial decisions?
And more importantly: Is that time you want to continue spending, or would you rather spend it elsewhere?
Are you sure you’re thinking of everything you’re supposed to be thinking about?
This one’s big. Most people only retire once in their lives. I’ve helped hundreds of people retire. That experience matters. There are strategies, pitfalls, and opportunities that you just don’t know about until you’ve walked hundreds of clients through the process.
For some people—especially younger investors just starting out—the right advice might actually be not to hire me.
I had a conversation recently with someone in their twenties. After learning about his situation, I told him, “Our fee would be $6,000 for a planning engagement, and honestly, you should invest that $6,000 in your retirement accounts instead.”
Sometimes, following a few simple rules of thumb is all you need at that stage.
But as your financial situation gets more layered, the value of professional guidance becomes clearer.
📖Read More: Wealth Management vs. Financial Planning
Solo Advisor or Wealth Management Firm? Which is Right for You?
Another great question I hear is, “When is it better to work with a wealth management firm versus a solo advisor with an assistant?”
Let me start by saying there are definitely good solo advisors out there who are doing great work for their clients. But, there are also some real risks to consider when working with a one-person shop.
Here are three things to think about:
1 - What Happens If Something Happens to Your Advisor?
This is one of the biggest concerns with solo practices. If your advisor becomes ill, retires unexpectedly, or even just decides to change careers, what happens to your financial plan? At a larger firm like ours, there’s built-in succession planning.
Your relationship with the firm and your financial strategy continues, even if your primary advisor is out of the picture.
2 - Is Your Advisor Still Fully Engaged and Motivated?
If your advisor is in their sixties, running their own firm, and doesn’t have a succession plan, you should ask yourself: Are they still fully engaged? Are they actively growing and evolving their practice? In a team-based firm, there’s often an “iron sharpens iron” effect.
We challenge each other, stay on top of best practices, and push each other to continually improve.
3 - How Resilient Are Their Operations?
If a solo advisor’s key assistant leaves, does the whole operation grind to a halt? That’s a real risk. I came from a small firm earlier in my career, where I had to learn how to do everything because we didn’t have formal processes in place.
Even if the advisor is great, losing a single team member can cause major disruption.
The Benefits of Working with a Larger Wealth Management Team
Here’s what you typically get with a larger firm like 360:
Built-in succession planning
Broader expertise across different areas of financial planning
Lower risk of advisor complacency
More robust operational support for clients
And maybe just as important: other advisors and specialists sitting right next to me. When I need to bounce an idea around or get a second opinion, I don’t have to look far.
At the end of the day, the decision comes down to what level of support and continuity you want for your financial situation.
What Do Financial Advisors Do?
Let's say you've built a great career.
You earn $300,000+ per year and have excellent benefits. You're doing well. But, how did you achieve this? Well, you've worked hard and specialized, and you consistently drive excellent results for your employer.
Now, here's an important question: Do you have the time and energy to also become excellent at investing, financial planning, estate planning, creating smart tax strategies, and planning for retirement?
Probably not. That sounds exhausting!
Imagine working a full-time job while also becoming an expert at wealth management. Most busy professionals and business owners don't have time to gain expertise in the complexities of managing assets over $1M.
That's where a good fiduciary financial advisor or wealth management firm comes into play.
They look at every single aspect of your financial life and well-being. They create a plan. And they assess and monitor that plan. They manage your investments, guide you through estate planning, review your tax return, and act as your financial guide.
In essence, they have your back.
While you're busy working, taking care of your family, and enjoying life, they're watching out for your financial future. A good wealth management firm will have specialists who understand all aspects of wealth management. They are pursuing excellence on your behalf.
A great financial advisor will help you with:
Clarifying financial goals (retirement, education, home purchase, etc.)
Creating a personalized financial plan
Managing and growing your investments
Minimizing taxes through smart strategies
Planning for retirement income
Saving for children's or grandchildren’s education
Reviewing insurance needs (life, health, long-term care)
Estate and legacy planning
Navigating major life events (business sale, divorce, inheritance)
Monitoring and adjusting your plan regularly
Providing confidence during market ups and downs
Working with your CPA, attorney, and other professionals
Staying ahead of financial risks and opportunities.
When Should You Get a Financial Advisor?
Situation | Why a Financial Advisor Helps |
You earn $250K+ per year | High income means higher stakes. An advisor helps you build a financial strategy and avoid mistakes. |
You have $1M+ in investable assets. | You need strategic help managing your investment portfolio, tax planning, and estate decisions. |
You’re 5–10 years from retirement. | An advisor builds a retirement income plan and prepares you for major financial decisions ahead. |
You feel unsure or anxious about investing. | Emotional decisions can cost you. A financial advisor brings professionalism and discipline to your investment strategy. |
You’re too busy to manage your money. | You focus on your career or business while your advisor watches over your financial objectives. |
You’re facing a major life change. | Business sale, divorce, inheritance, or a new family plan? A good advisor helps you make clear financial choices. |
Is a Financial Advisor Really Worth the Cost?
A good advisor should (ideally) help you make more than they charge.
Think of it like hiring a guide for a mountain hike. You could go alone and maybe be fine. But with a pro, you’ll avoid wrong turns, save time, and probably reach the peak faster and safer.
Advisors help with investment strategy, portfolio management, tax planning, risk management, retirement planning and avoiding costly mistakes. If you're earning a six-figure salary, even a few small missteps can cost thousands.
A good advisor will seek to grow your investment portfolio by more than their fee through better strategy, discipline, and advice. They'll aim to help you reach your financial objectives so you can retire comfortably and achieve financial freedom.
According to Schwab's Modern Wealth Survey, nearly 3 in 5 Americans are investing today.
But how many of these investors are skilled at every aspect of wealth management? Almost none. That's not to say that the average investor doesn't have some proficiency.
But as your net worth climbs, so does the complexity involved. And with greater assets, the risk of losing those assets can loom large. The strategies your advisor can use to help you minimize risk and maximize reward are not something the average investor has time to execute.
As you get closer to retirement, the thought of losing what you've built can be terrifying.
But you don't have to do your investment and retirement planning alone. If you have built up substantial assets and are near retirement, a financial advisor is almost certainly worth the cost.
Five Signs You Might Need a Financial Advisor
You’re successful, but your money feels disorganized or chaotic.
Here are five signs it might be time to call in a pro:
1) You make good money but don’t have a clear plan for retirement.
2) You have investments but aren’t sure if they match your goals.
3) Tax season feels confusing or painful.
4) You’re too busy to manage your money well.
5) You worry about leaving a mess for your family after you pass.
If any of these situations sound familiar, you're not alone. High earners often focus on building income but don’t always have the time or tools to build a strategy. That’s where an advisor fits in.
What Is a Fiduciary Financial Advisor and Why Does It Matter?
A fiduciary must always act in your best interest.
That’s not just a promise. In fact, it’s a legal duty. Many people don’t realize that not all advisors have to put your best interests first. Some can recommend products that pay them more, even if they’re not the best fit for you.
A fiduciary is different.
They’re bound by law to give advice based only on what’s right for you. When you’re trusting someone with serious money, you want honesty, not sales talk.
Asking, “Are you a fiduciary?” is one of the smartest things you can do. It’s like knowing your doctor won’t prescribe something just for a bonus.
Robo-Advisors vs Human Advisors
Robo-advisors are smart, but they’re not personal.
Automated platforms like Betterment or Wealthfront use algorithms to manage your money. They’re low-cost, work 24/7, and great for basic investing.
But they don’t know if you’re planning to sell your business, put three kids through college, or buy a lake house.
Human advisors ask deeper questions, watch for risks, and adjust your plan over time.
They catch things algorithms can’t. For people with assets under $250k, a robo-advisor is fine for now. For others—especially high earners juggling a lot—a human brings real value.
If you have a complicated financial situation, then working with a financial advisor who can give you professional advice and execute advanced strategies is likely well worth it.
You wouldn't try to do your own root canal.
Why would you want to do your own tax planning, estate planning, investment management, risk management, and retirement planning?
How to Choose the Right Financial Advisor
The right advisor should fit your life, not the other way around.
Here are five tips to help you hire a financial advisor who is a good fit for your needs:
Know what you need. Are you looking for a team that will help you with every aspect of your financial life, or do you just want a financial plan?
Check their credentials. Look for a CFP® or AIF®. These are trusted, rigorous designations.
Ask if they’re a fiduciary. This means they’re legally required to put your interests first.
Understand how they get paid. Fee-only advisors are often the most transparent. Find out what the AUM percentage will be for someone with assets at your level.
Find someone who listens. A great advisor won’t talk over you—they’ll ask questions and really hear your answers.
Real Client Win: She Saved $29,000 on Taxes with One Smart Move
During a routine tax review, I spotted a big opportunity.
A high-earning client had recently switched from employee to contractor. This shift allowed her to open a Solo 401(k). With my help, she contributed $73,500, dropping her federal tax rate from 32% to 24% and saving more than $29,000 on her 2023 return.
I also used a backdoor Roth strategy, increasing her Roth IRA by $7,000.
Smart tax planning like this is one of many ways a financial advisor adds real value, beyond just managing investments. A good financial advisor will provide personalized guidance and assess your financial needs as your life changes.
Common Questions
At what income should you get a financial advisor?
There’s no magic number, but once you’re earning $250k–$300k or more, the value of smart advice increases. At that level, your financial situation tends to get more layered—investments, taxes, estate planning, and more.
A financial advisor can help you make the most of your income and avoid big mistakes as you pursue achieving your financial goals.
Is it worth it to pay 1% to a financial advisor?
If an advisor helps you avoid just one big mistake or improves your investment returns, that 1% can pay for itself many times over. They also free up your time and manage stress.
The key is working with someone who delivers clear value beyond just picking stocks.
What is financial planning?
Financial planning is the process of mapping out your goals—like retirement, education, or buying property—and creating a strategy to reach them.
It includes budgeting, investing, tax planning, and risk management. Think of it as a blueprint for working towards your financial goals.
What is a Certified Financial Planner?
A Certified Financial Planner (CFP®) is a professional who has passed rigorous exams and meets strict standards in areas like retirement, taxes, insurance, and estate planning.
They must also act as fiduciaries, putting your best interests first. It’s one of the most trusted credentials in financial advice.
Will my financial advisor help with retirement planning?
Yes, retirement planning is one of the most important things an advisor does. They’ll help you figure out how much you need, when you can retire, and how to draw income efficiently.
A good advisor also stress-tests your plan for market changes or unexpected events.
Do I need a financial advisor or a financial planner?
It depends on what you’re looking for. If you just want help picking investments, an advisor may be enough. If you want a full strategy that includes retirement, taxes, and more, you’ll want a financial planner—ideally one with CFP® credentials.
How does a financial advisor help with tax planning?
They look at your whole picture to find ways to lower your tax bill now and in the future. That might include tax-efficient investments, smart use of retirement accounts, or timing income and deductions. A great advisor works closely with your CPA for the best results.
How is a traditional financial advisor different from automated investment management?
A traditional advisor meets with you, understands your goals, and helps with decisions beyond investing, like planning for kids’ college or business succession.
An automated platform uses algorithms to manage your portfolio, usually at a lower cost. But it won’t call you when tax laws change or your life shifts.
What is a registered investment advisor (RIA)?
An RIA is a firm or individual registered to give investment advice and legally required to act in your best interest. Most RIAs are fee-only and independent, meaning they don’t earn commissions for selling products.
They’re often a good fit for high earners looking for independent advice.
Do I need a wealth manager or an investment advisor?
If your personal finances are more complex—business ownership, multiple properties, large portfolios—a wealth manager can offer more holistic help. Investment advisors typically focus on your portfolio, while wealth managers handle the full picture.
The right choice depends on how many moving parts you want help with.
What is the most important financial industry regulatory authority?
The most important financial industry regulatory authority in the United States is the U.S. Securities and Exchange Commission (SEC). The SEC is the primary federal agency responsible for enforcing securities laws, protecting investors, maintaining fair and efficient markets, and facilitating capital formation. Its oversight covers most financial advisors, investment firms, and public companies.
However, if you want to check the background of a financial advisor you’re considering working with, the two most important places to look are:
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About the Author
Michael Urch
As a CERTIFIED FINANCIAL PLANNER,™ Michael advises his clients on insurance planning, investment planning, retirement income planning, tax planning, and estate planning. He prides himself on being a professional advisor who puts planning before products. This is one of the reasons he was attracted to 360 Financial’s client-focused culture. Michael likes to start with each client’s “why.” By understanding what’s truly important to them, the “what” of investment and planning strategies can be custom-designed to support their long-term ambitions.
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At 360 Financial, our clients come first. You deserve personalized attention. You’ll be happier and more confident in your financial future when you have an advisor who always puts your needs and best interest first. Schedule a 15-minute introductory call with a 360 financial advisor to see how we can help with your retirement, succession, tax, and estate planning.
About 360 Financial
360 Financial is an independent wealth management firm with a team of specialized financial advisors and financial planners. As fiduciaries, 360 Financial’s advisors provide services to business owners, entrepreneurs, and professionals. We help investors with sudden wealth, retirement planning, tax planning, estate planning, and business financial planning.
Headquartered in Minnesota, we serve investors across the US with online and in-person wealth management and financial planning services.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This is a hypothetical situation based on real life examples. Names and circumstances have been changed.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.
Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.
