A good financial advisor or robo-advisor can be worthwhile if you can save more money, reduce your expenses, or better plan for the future. A financial advisor can also help you feel more secure in your financial situation, which may be priceless. But financial advisors can also come with high fees. Whether or not a financial advisor is hired, you will have a different answer for each individual.
If you are well-versed in financial literacy and investing and are just looking to increase your wealth, you may not need a financial advisor. On the other hand, if you are not confident in investing money or understanding the financial markets, then a financial advisor could be worth it. Similarly, if you have a complex financial profile, such as multiple sources of income, a variety of assets, and tax requirements, a financial advisor can also be worthwhile. Financial advisors can be great when you are confused, emotional, or simply ignorant of various wealth management topics.
Add in the fact that most people can't see far enough into the future to imagine retirement, let alone plan for it, and professional advice can be very helpful. A qualified counselor will ask you a lot of questions, some of them uncomfortable to get a full picture of where you want to lead your life. It's generally a good idea to work with a financial advisor whenever you're making decisions about long-term investments or financial planning. If you do it on your own, you must have in-depth knowledge of financial markets, investment types, and laws regarding taxes and retirement funds.
It can take a long time to keep up with all of these matters on your own. That's something to keep in mind if you're looking for a financial advisor; it's no different than seeing a doctor who may have 10 years of research and publishing experience, but who has never performed clinical examinations. The things you should weigh when looking at your bank's advisor are actually the same things you should consider with any financial advisor. It seems pretty clear that the consensus is that most doctors who choose not to do DIY, most of whom are HNWIs, should seek the help of a competent financial advisor.
You'll need the tools, experience and objectivity provided by a financial advisor to help you make the best decision right from the start. Many of us feel lost in our finances, that getting a second opinion from a financial advisor can be reassuring. While not all financial advisors can trade securities, many can act as your liaison with a broker or money manager who does. As WCI points out, it's possible to do DIY financial planning effectively, but most would be crazy to try to do it yourself with the legal, CPA (or medicine).
A financial advisor can give you valuable information about what you need to do with your money to achieve your financial goals. These include the Financial Planning Association (FPA) and the National Association of Personal Financial Advisors (NAPFA). A good financial advisor will listen to your objectives and understand the amount of risk you are willing to take so that you can find products that match those objectives. Depending on your area of expertise, financial advisors can help you with everything from putting together a complete retirement savings plan with an attached schedule or simply answering a question about total life insurance.
I believe that lawyers and CPAs (and doctors) add more value in their fields than financial advisors in their financial planning. A financial planner helps people with long-term financial goals that cover a wide variety of areas, from retirement planning to estate planning, investing and saving for a child's college fund. If you decide to seek advice, carefully choose the right professional for the job and you should be on your way to a better financial plan. .