Is a Financial Advisor Worth It?

Dear Friend in Finance,

I see a lot of people online saying you need a financial advisor, but I’ve never had one, and honestly, I think I’m doing okay. I budget, I save, I invest a little. But I don’t have a ton of money. So is an advisor even relevant for me? What exactly do they do that I can’t handle myself? And is it actually worth the cost?

Sincerely,

DIY Investor

Dear DIY Investor,

You're asking the right question when it comes to money: Is it worth it?

Hiring a financial advisor can feel daunting, especially when:

1. They cost money. If you’re already stretched thin, the idea of paying someone to help with money might seem counterintuitive. Shouldn't you just focus on keeping as much of your income as possible?
2. You have to trust them. Numbers don’t lie, but sharing your full financial picture with someone can feel vulnerable—especially if you’re struggling. Money carries emotional weight, and opening up about it can bring feelings of shame or stress.

These are valid concerns, and if you've never worked with an advisor before, it might seem like money going out the door for no real reason. However, financial advisors provide value in ways that aren’t always obvious upfront.

But I Don’t Have a Ton of Money… So Why Would I Hire One?

This is one of the most common objections, and it makes sense on the surface. After all, if you’re not wealthy, why bring in an advisor? The key is to flip the perspective:

💡 "Financial advisors aren’t just for the wealthy—they’re one of the reasons people build wealth in the first place."

You don’t need a six-figure portfolio to benefit from financial guidance. In fact, if your finances feel uncertain, working with an advisor can be even more impactful because they help optimize what you already have and ensure you're making the right long-term moves.

It’s like going to the gym: you don’t wait until you’re already in great shape to hire a personal trainer. You bring them in when you need help making progress.

We Don’t Know What We Don’t Know

One of the biggest challenges with money is that it’s hard to learn from experience. Unlike daily habits—where trial and error leads to improvement—financial decisions often happen infrequently and carry lasting consequences.

Take refinancing a loan, for example. Most people only refinance once or twice in their lives, so they don’t know:

• What a good interest rate looks like
• How to negotiate with lenders
• What hidden fees to watch out for

A financial advisor, on the other hand, sees these situations all the time. They can help you avoid mistakes and take advantage of opportunities you might not have known existed.

They See the Big Picture

Finances are filled with emotions. And emotions can make us do some wild things—especially when money is involved.

A great example? Investing.

When the stock market drops, it’s human nature to panic and sell to "protect" our money. When it skyrockets, many people rush in, afraid of missing out—often buying when prices are already inflated. Without an outside perspective, it’s easy to make costly emotional decisions without even realizing it.

A financial advisor helps you step back, stay focused on the long-term strategy, and avoid knee-jerk reactions that could cost you thousands over time.

They Keep You Accountable

We all have financial blind spots. Maybe you think you’re saving enough, but you’re actually under-prepared for retirement. Maybe you feel like your spending is under control, but somehow, money still slips away each month.

A financial advisor helps you identify areas for improvement and keeps you accountable to your goals—kind of like a money coach who helps you stay on track.

Money Without Shame

One of the biggest unspoken benefits of working with an advisor? Peace of mind.

A good financial advisor doesn’t judge you. Their job isn’t to shame you for past mistakes or tell you what you "should have" done differently. Instead, they focus on where you are now and how to move forward.

Over time, this means going from stress and uncertainty to feeling clear and confident about your financial future.

The Bottom Line: Does an Advisor Actually Add Value?

At the end of the day, working with an advisor is about more than just managing investments—it’s about optimizing your financial life in a way that maximizes long-term success.

And if you’re wondering whether it’s worth the cost, consider this: Vanguard found that even with advisor fees, investors who worked with a financial advisor saw, on average, 3% higher net returns. (Source)

That 3% might not sound like much, but over time, it compounds into a huge difference in wealth.

So, is hiring a financial advisor worth it? The answer depends on your goals, but for many people, the value far outweighs the cost.

Final Thoughts

If you're still unsure, you don’t have to commit right away. Many advisors offer free consultations where you can explore whether it’s a good fit—no pressure, no commitment. At the very least, you’ll walk away with some insights you can apply on your own.

At the end of the day, the real question isn’t whether you can manage your money alone—it’s whether you want to. An advisor helps you do it better, faster, and with fewer costly mistakes.

Sincerely,
Your Friend in Finance