When Should I Hire a Financial Advisor?

So, you’re a die-hard DIYer who, up to this point, has made your financial dreams come true. For this reason, you aren’t sure you need someone to help you manage your investments, let alone pay someone. After all, you can find anything on the internet these days… right?

Studies show hiring a financial advisor can significantly enhance your long-term financial success. In fact, Russell Investments found in their 2025 “Value of an Advisor” study that advisors can deliver up to 4.87% of added value per year¹, driven by rebalancing, planning discipline, and managing emotional investment behaviors. Most people assume the role of a financial advisor is merely investment management. While it is accurate that as wealth managers, we at CWM we DO manage investments, investment management accounts for less than half of what we help clients with on a day-to-day basis. Much of what we advise clients on has more to do with strategic guidance and the emotional side of finance.

I often joke with clients that chances are I am going to save you from yourself enough times to more than make up for the fee you pay - what we at CWM call "protecting your future self from your present self". In addition to these instances, we are going to help guide you - providing you with the knowledge and understanding to feel confident in all areas of your financial picture. Areas like risk mitigation, retirement planning, tax efficiency, estate planning, and navigating the news that comes across your desk each day. In the end, our team's goal is to help those we work with stay the course during volatile markets and avoid emotionally driven decisions that can erode wealth.

That said, working with an advisor isn’t always necessary. So, who should consider it, and when is the optimal time to start working with an advisor? Be on the lookout for those practical indicators on when to engage a financial advisor: identifying and negotiating life goals with a spouse or partner, managing equity compensation, approaching retirement, receiving a large inheritance, or selling a business. Outside of these common areas, know what you don’t know. Are you able to evaluate strategic financial decisions from a factual and dispassionate standpoint? Are you up to date on the latest complex rules around retirement plans and taxes? Can you say with certainty that you have positioned your finances efficiently for those who will be inheriting them?

On the other hand, if your finances are straightforward (e.g., single income, working towards a consistent savings rate, no major assets beyond the company match within your 401(k)), and you’re financially disciplined - perhaps staying the course until the above indicators take place is the best option for you.

As your wealth grows, life becomes more complex, and your decisions carry larger stakes - the role of an advisor shifts from optional to strategic. The decision ultimately becomes less about picking stocks, and more about having a long-term sounding board partner who can help navigate life’s financial inflection points.

Whether it's optimizing your tax situation, ensuring you're on track for retirement, or transferring wealth efficiently to the next generation; an advisor brings structure, accountability, and peace of mind - qualities that, for many, are worth far more than the fees they pay.

If you are on the fence or would like to learn more about working with a financial advisor, click HERE to schedule a complimentary 30-minute, no strings-attached call or Contact Us at (425) 778-6160.

¹ Russell Investments. 2025 / 12th Edition Value of an Advisor. 2025. https://russellinvestments.com/content/ri/us/en/financial-professional/tools-and-education/business-solutions/value-of-advisor

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money. Diversification and asset allocation do not ensure a profit or guarantee against loss. Past performance is no guarantee of future results. This communication is informational only and is not a solicitation for investment advice.