When a Financial Advisor Is (and Isn’t!) Worth the Investment
Ever wonder if hiring a financial advisor is actually worth it? The answer isn’t always yes.
Let’s be real—if you’re paying a financial advisor just to keep an eye on your investments, you’re probably throwing money down the drain. Wall Street’s little secret? Managing your investments is the easiest part of building wealth.
So is, and isn’t, it worth it?
When a Financial Advisor Isn’t Worth It
If you’re paying an advisor solely for investment management, financial experts like Ramit Sethi would argue it’s not worth the fee. And we agree. Why? Because setting up an investment portfolio is one of the easiest parts of managing your wealth—it’s highly automated these days. Many advisors simply create a portfolio that you could easily set up yourself through a robo-advisor at a fraction of the cost.
Take Sethi’s advice: if your main goal is just to invest for the long term without specific objectives, go DIY with a basic S&P 500 index fund or a robo-advisor. For long-term goals like retirement, this straightforward approach works because you’re investing money you don’t plan to touch for years. With a low-fee index fund, you can “set it and forget it,” with minimal costs and stress.
Why “Set It and Forget It” Has Its Limits
Here’s where the DIY approach starts to fall short. Most advisors on Wall Street are trained to set up your investments, but that doesn’t mean they’re actively managing them in the context of your goals. They’re not out watching the market every day—they set up a portfolio and move on to finding new clients. So, if all you’re looking for is portfolio setup, it’s often not worth hiring an advisor.
However, your financial life should go beyond investments alone. Without linking investments to specific goals (like buying a home in five years), you’re missing a key part of wealth management.
When a Financial Advisor Is Worth the Investment
Where a financial advisor truly adds value is when they help you define what you’re investing for. Goals-based investing—where your investments align with specific life goals, like homeownership, travel, or retirement—is the core of our approach at Stash Wealth. Instead of just “growing your wealth,” we help you create purpose-driven investments that support your life and aspirations.
Imagine you’re thinking of buying a house in five years. Investing in a way that aligns with that short-term goal requires a different approach than saving for retirement in 30 years. A good advisor helps you create and execute a plan based on what you want to achieve, your lifestyle, and the timeline of each goal.
Surprising Benefits of Working with a Financial Advisor
One of the biggest “aha” moments for our clients is realizing how manageable their finances actually are once they have a plan in place. Before financial planning, many people feel that they’re stretched thin, assuming there’s no extra money. But when you have a clear plan, clients often find they have more than enough to fund the things they care about.
At Stash Wealth, we don’t make you sacrifice today’s lifestyle for tomorrow’s goals. Instead, we build a plan around your current lifestyle and future ambitions. Clients often find they can save for big goals, like a house or retirement, without feeling like they’re constantly sacrificing.
Why Stash Wealth’s Approach Is Different
At Stash, our mission is to help you get on track for your goals—without jargon or unnecessary complexity. We believe every decision should serve a purpose. That’s why we don’t make any investment recommendations until we’ve mapped out your goals, priorities, and lifestyle. Our focus isn’t on selling investments but on helping you live the life you want today and tomorrow.
Financial advisors are worth the cost when they help you plan holistically, linking your investments to your life goals. But if you only need basic investment setup, consider DIY options like robo-advisors or low-cost index funds.
The Bottom Line
If your advisor is only there to manage investments, you’re overpaying for something you could automate with a robo. But if they’re helping you map out real-life goals, align your investments with your dreams, and actually do more with your money, they’re worth every penny. Financial advice should be about more than just portfolios—it should be about living the life you want, now and in the future. A solid plan makes all the difference.
Ready to create one that works for your life? Book a call to start building a future with purpose.
Key Takeaways
Paying an advisor just for investment management? You’re probably overpaying—try a robo-advisor instead.
Real financial advice goes beyond stocks and bonds; it should start with understanding your goals and what matters to you.
A good advisor helps you balance living well now with planning for the future—without making you feel restricted.
Goal-focused financial planning makes it easier (and more satisfying) to save, invest, and stay on track.
The right plan lets you reach your goals and enjoy life along the way—no guilt required.
The F. Word
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Financial Planning For 30-Somethings
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