Do I need a financial advisor? Five signs to say yes.
Research shows the benefits of hiring a wealth management financial advisor can outweigh the costs.1
Summary
- Signs it's time to hire a financial advisor include a lack of clear financial goals, growing tax complexity, emotional investing and concerns about life changes.
- A financial advisor can provide value beyond investment management through tax-efficient strategies, behavioral coaching during market downturns, and guidance on major life decisions from career changes to elder care planning.
- Studies show that professional financial advice can deliver returns beyond its costs, with advised clients reporting higher levels of happiness and confidence.
Upgrading your financial plan
As a busy professional, your days are consumed by work, family and finances. From paying bills and making mortgage payments to contributing to retirement accounts, it’s hard to keep up with the steady stream of expenses. You may suspect there are ways to upgrade your financial plan, but you don’t have the time or know if help is worth the cost.
Here are five signs it may be time to partner with a financial advisor who can provide the personalized guidance and support you need for a secure financial future.
1. You don’t have a clear picture of your financial goals—or how you’ll pay for them.
You have a vision for your ideal future—the places you want to explore, where you want to live in retirement and the support you hope to provide your family. But have you clearly defined these goals and how you’ll achieve them? If you're married, are you and your spouse aligned?
A financial advisor can guide you by recommending strategies to increase your chances of success—and potentially help identify additional goals you didn't realize were possible.
2. Your tax burden is growing.
As your income, savings and investments grow, so do your tax obligations. Working closely with a financial advisor can help mitigate this tax burden.
In collaboration with your accountant, an advisor can identify tactics—like tax-loss harvesting and strategic asset location—to boost your tax efficiency, potentially saving you thousands annually. In fact, one study estimates optimal asset location alone can increase after-tax returns by as much as 0.3% per year.2 That equates to $1,500 on a $500,000 portfolio, which over 20 years would accumulate to more than $30,000 in additional savings.
3. You try to avoid market downturns.
It’s well documented: We’re wired to feel losses more acutely than gains3—a behavioral bias that can make even seasoned investors uneasy when markets decline (leading some to sell at the worst times).
Consider that over the past 20 years, missing just the 10 best trading days for the S&P 500 would’ve cost you more than 40% of the index's average annual return (10.4%) during that time.4
This is where experienced financial advisors—and the professional money management they provide—can make all the difference. Advisors provide a steadying voice during turbulent times, helping you stay focused on your long-term goals and build a portfolio designed to withstand market volatility.
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4. You worry about how change will impact your financial future.
Financial advisors can provide guidance on the many life decisions that affect your finances. They can help you make well-informed choices about critical questions, such as:
- Can I afford to switch jobs and take a pay cut?
- Will I be able to afford college tuition for my kids?
- Do I have the appropriate insurance coverage?
- Will our family have enough savings to cover a parent's memory care expenses?
These are big questions that keep people up at night, but having an experienced advisor can help alleviate stress and keep your finances (and your life) on track.
5. You haven’t hired a financial advisor because you’re not sure it’s worth the cost.
The fees associated with investing and financial planning can seem opaque. But the right advisor should be upfront about their costs—typically a percentage of the assets they manage for you, though fee structures vary.
Evidence shows quality financial advice delivers value well beyond these fees—see, for example, an annual study by Russell Investments.1 Additionally, people with financial advisors report higher levels of happiness and confidence and lower levels of stress compared to those without.5 The key is finding the proper fit. By partnering with an advisor who is transparent about costs and demonstrates the value they add, you can feel confident the investment is worthwhile.
Get actionable advice today.
The demands on your time make it easy to overlook strategic financial planning. But neglecting the need for professional advice could jeopardize the stability and security you've worked hard to achieve. Take the first step today towards a better tomorrow—
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The TIAA group of companies does not provide tax or legal advice. Tax and other laws are subject to change, either prospectively or retroactively. Individuals should consult with a qualified independent tax advisor and/or attorney for specific advice based on the individual’s personal circumstances.
The views expressed in this material may change in response to changing economic and market conditions. Past performance is not indicative of future returns.
This material is for informational or educational purposes only and is not fiduciary investment advice, or a securities, investment strategy, or insurance product recommendation. This material does not consider an individual’s own objectives or circumstances which should be the basis of any investment decision.
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1 Jung, Brad, “Value of an Advisor Study 2024: 4 Key Ways Investors Benefit,” Russell Investments, May 9, 2024,
2 Vandenburg, Mark, Jr., “Asset Location Can Lead to Lower Taxes. Here's How to Get More Value,” Vanguard, August 21, 2023,
3 BehavioralEconomics.com, “Loss Aversion,” https://www.behavioraleconomics.com/resources/mini-encyclopedia-of-be/loss-aversion/. Accessed May 14, 2023.
4 Morningstar Direct. The returns are based on the average annual returns from 2004-2023 for the S&P 500 index and what would have happened if you’d missed investing on the best 10 days during that 20-year period. Past performance is no guarantee of future results. An investment cannot be made directly in an index. The S&P 500 index is based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.
5 Herbers & Company, “2021 Herbers & Company Financial Behaviors Study,”