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When does it make sense to hire a financial advisor?

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Thomas
Thomas
5 months ago

When you’re rich. 😁 More generally, when you have more money than time.

Rick Connor
Rick Connor
5 months ago

If you don’t have the interest, or won’t make the time, to understand the complexities of FP, it makes sense to find a good, independent FA. I’ve seen dramatically how having a good plan, and following it, is so superior to no plan. Also, if you have complex issues, like disabled children, finding an expert is critical. I know an elder law attorney who has helped a number of friends navigate the complex Medicaid rules and help them with sick parents.

Scrooge_McDuck88
Scrooge_McDuck88
6 months ago

I moved a portion of my assets to trust company once I got to financial independence and the complexity of tax planning, asset allocation and wealth transference strategies was more than I could manage.

Mike Zaccardi
Mike Zaccardi
6 months ago

Time and complexity. I found it super easy to effectively manage my portfolio in my 20s – maxing out tax-advantaged accounts and doing small tax-loss harvesting. Index funds. Brokerage account, HSA. Easy peasy.

As I’ve gotten into my 30s and have my own LLC, there are some complex issues. I should have invested a little time with a CPA/tax advisor a year or two ago. No big hiccups, but there could have been some opportunities to save more.

I now find myself seeing the value of the behavioral benefits of working with an advisor. Being more hands-off now that my portfolio has grown is probably a good thing to keep my emotions out of play. So I should high-tail it to a CFP, but my controlling nature/bias is stopping me. For now.

Andrew F.
Andrew F.
6 months ago

When you have neither the time nor the interest in doing it yourself.

James McGlynn CFA RICP®
James McGlynn CFA RICP®
6 months ago

I think “hiring a financial advisor” is a pretty open-ended term. Wealth manager, investment manager, financial planner, life insurance advisor all can serve a purpose at different life stages. Then two important questions need to be asked: do you trust them to do right for you as a fiducuary and how much should you pay.

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