Is a Financial Advisor Really Necessary?

Dec 7, 2021 | All Posts, Blog | 0 comments

Have you ever wondered if hiring a financial advisor is really necessary? After all, with a little discipline and research, can’t you do your financial and retirement planning on your own? Is investing in professional help for your finances really worth it?

You may be able to do some financial and retirement planning on your own. However, planning your financial future is a major decision (and series of decisions) that will affect the rest of your life. Partnering with a financial advisor to develop a retirement plan may help reduce anxiety. It helps you know that you and your family are cared for. It allows you to feel more empowered in your financial future.

Many people simply don’t have the time to create a solid financial plan and monitor its progress through the months and years. Others don’t have the knowledge to make the best investment decisions. Almost everyone is in a better position when they have a second, expert opinion—someone who’s well-experienced in the field of investment and finances. According to a study by Ramsey Solutions, 44% of people who partner with a financial advisor have $100,000 or more saved for retirement. In contrast, only 9% of people who plan on their own have that amount saved.

Don’t just take our word for it, though. Let’s dig into some more of the specific advantages of hiring a financial advisor.

The main benefit of a financial advisor – experience

Many people can be well-read or well-studied in the area of finances. Still, a financial advisor almost always has the added benefit of experience. While most people only get to retire once, a financial advisor gets to “practice” retirement many times with his or her clients. Advisors get to see what works, what doesn’t work, and what to look out for.

Don’t make irreversible decisions you’ll regret

Financial advisors can help you avoid a plethora of financial and retirement mistakes. There are many decisions that can only be made once. An advisor may help you to avoid irreversible decisions that you’ll regret. For example, quitting your job and correctly claiming social security (starting at the best time for you) are a couple of decisions that are very difficult (if not impossible) to reverse. Every year, tax planning is done on 12/31 of that year. If the appropriate transactions aren’t accomplished on time, there is no way to go back. Another example is investment decisions. Often, these have consequences that are only apparent over time. An advisor can help you make wise decisions the first time so you can avoid negative consequences.

Whether you’re thinking of selling a business, buying a home with cash, or taking no action at all (which can be a risky decision, too!), an advisor can help you understand your options, alternatives, and the impact of your decision. You don’t have to guess on these life-changing choices.

Non-financial aspects of retirement

There are also a variety of non-financial aspects of retirement. A financial advisor can help you think through these decisions as well. They can assist you in making a plan for how to retire. For example, depression is a very common negative effect of retirement. Leaving your career after decades is a huge change. It can be quite jarring if not planned well. When you’ve spent years and years being at work for forty hours per week, leaving those hours behind is a very significant adjustment! Unless you have something with which to fill those hours, retirement can quickly turn from celebration to depression. A financial advisor can help you think through all of these things and make a plan so that you can experience a joyful and fulfilling retirement.

Get an expert opinion on your situation and remove doubt

Lastly, an advisor can help you make decisions that will help you stay on track to meet your retirement goals. People who don’t use an advisor often make more emotional decisions, such as overreacting in market downturns and selling off funds too quickly. Since they are not as emotionally invested, financial advisors are generally more patient and will be able to better keep you on track.

Work toward your goals with confidence

Having an experienced professional’s guidence on your future financed and retirement may provide you with confidence to work toward your goals. People who know exactly how much they need to save each month tend to feel less anxious and even get better sleep.

Here is a recap of some more of the benefits you will receive when you work with an advisor:

  • Empowerment in your financial future
  • Advantages of experience
  • Avoidance of damaging, irreversible decisions
  • Assistance with non-financial planning
  • The potential for consistent, long-term growth

If you don’t have a financial advisor, we’d love to assist you. At Milestone Wealth Management, we’ve helped over 300 individuals and families create comprehensive plans for their financial future. We can help you, too.

Investing in your financial future now will help pay dividends in the long run, so contact us today and let’s talk! 


This material is not intended to replace the advice of a qualified tax advisor, attorney, or accountant. Consultation with the appropriate professional should be done before any financial commitments regarding the issues related to the situations above are made.

Download our 15 Detailed Steps to Financial Success

One of the most difficult parts about planning for the future is the unknown. Because of this, we’ve created a free financial checklist that allows you to take note of which areas of your financial life are all set and which ones need attention.

Welcome to our mailing list! A copy of our 15 Detailed Steps toFinancial Sucess is on the way to your inbox.