Do you think you need a financial advisor? The short answer is yes, you certainly do. A financial advisor is a professional who can help you with your finances in numerous ways. They can help with investing, financial planning, retirement planning, and more.

However, not every single person needs a financial advisor. Once you’ve reached a certain level of investable assets and thought about your financial future, working with a financial advisor is essential. This guide below will walk you through what financial advisors do and why they’re important. Moreover, it goes over who will benefit by working with a financial advisor.

Why Seek for a Financial Advisor?

Financial matters can be complicated. Tasks such as buying and selling stocks, preparing for retirement, and protecting your estate for generation-passing are all complex and need expert involvement. Handling all of them on your own will only make it more complicated.

A financial advisor can help make these tasks come to light. They can holistically assess your financial situation and help you craft a financial plan that’s specially made to achieve your larger financial goals.

Apart from that, financial advisors have the investment expertise to make smart decisions that will help your money grow. They can help you create an asset allocation that fits with your goals and adjust it as you get older or your goals change. At the same time, financial advisors can help you to protect your assets, which eventually becomes important when you’re near retirement. With their help, you’re ready to retire whenever you want.

Who Should Have a Financial Advisor?

No specific age, career, or salary level can limit you from having a financial advisor. Basically, if you find your financial life more complicated than simply depositing your paycheck and taking out money, then it is time for you to find a financial advisor. Though many financial advisors have a minimum initial investment requirement, you’ll have to see to it that you find a financial advisor that fits your financial situation.

If you’re going through any major life transition, then you should also consider looking for a financial advisor. This transition could be anything from starting a family, receiving a sizable inheritance, or going through a divorce. If you have kids, for instance, you’ll want to start thinking about saving up for their college education and possibly passing on an inheritance. The right financial advisor can assist you with these things.

What Type of Financial Advisor Do You Need?

Basically, there are two types of financial advisors that you can choose from – asset managers and wealth managers.

If you’re looking for someone to guide you with investments in stocks, bonds, and other financial products, seek for an asset manager. An asset manager will work with you in creating a portfolio that tracks your financial goals, risk tolerance, and time horizon.

On the other hand, if you’re seeking a broader view of your finances, it’s best to seek help from wealth managers. Aside from helping you build your portfolio, a wealth manager will consider your overall financial health and take steps to secure your assets in the long run. Plus, they can help with things like tax planning, estate planning, education savings, and charitable giving.

Many financial advisors act as both an asset manager and a wealth manager. Before you hire a financial advisor, see to it that you’re hiring one who will be able to provide the services you need.

Where Can You Seek for a Financial Advisor?

There are numerous ways to look for a financial advisor. One of the most common methods is to ask recommendations from family members, relatives, or friends. However, there are potential setbacks to this method.

One major problem with this method is that your family and friends may have disparate needs and goals from you. For instance, the needs of a 30-year-old are likely to be much different from those of a couple in their 50s or 60s. Though if you choose to accept advice from a friend or family member, see to it that the financial advisor can provide the services you need. Ideally, you’ll ask for recommendations from a friend or family member that has the same financial situation as yours.


In reality, there is no definite rule on when it is time to get a financial advisor. Though if you’re trying to decide if you need a financial advisor, you have to consider a few things. If you have enough money in your bank account to start investing or if you’re navigating a significant life change, then look for an advisor. They are the ones who’ll help you have a good and prosperous future.

Important Tips When Looking for a Financial Advisor

Before you hire a financial advisor, understand how much their services will cost first. Most advisors charge based on a percentage of assets under management. However, other fees may be involved. One distinction to note is whether an advisor is fee-only or fee-based.