When should I hire a financial advisor?
The clearest moment to hire a fee-only fiduciary advisor is when the cost of getting one decision wrong is bigger than the cost of a year of advice. The common triggers are tax-complex events, a major life change, or a behavior gap you have spotted in yourself. Routine examples include selling a business, exercising a large equity comp grant, getting a windfall, choosing when to claim Social Security, or planning a multi-account drawdown in retirement. In each case, the wrong call can cost five or six figures. A fee-only advisor charges in the four-figure range and is paid only by you. The math usually works. It does not work for someone whose household finances are simple and stable. It also does not work for someone who is happy to read a lot of Bogleheads threads on their own. Use the trigger list below to gut-check whether this is your moment.
The classic triggers
You probably need a fiduciary advisor when one of these happens:
- Within 5 years of retirement. Drawdown design, tax-aware withdrawal order, Roth conversions, and Social Security timing all interact.
- Concentrated stock or equity comp. RSUs, ISOs, NSOs, ESPP, founder shares — the tax math is unforgiving.
- Selling a business. Installment sales, qualified small-business stock, charitable trusts, and entity choice all matter.
- Inheritance or windfall. Step-up basis, inherited IRA rules, and tax-bracket management.
- Divorce or remarriage. Asset splitting, beneficiary updates, and estate-plan resets.
- Buying or selling a major property. Especially if it interacts with retirement timing.
- You panic-sell or panic-buy. A behavioral buffer is real, even if it does not show up on a spreadsheet.
Before you hire — get a plan first
Most fee-only advisors offer a one-time financial plan for $2,500 to $5,000. Buy the plan first. If the plan reveals work that needs ongoing oversight, then hire ongoing. If the plan reveals you are already on track, you have saved yourself a year of fees.
What about robo-advisors?
A robo-advisor is fine for accumulation. It is weak at planning, tax design, and the human stuff. Use a robo for the easy decade and a fee-only advisor for the hard decisions.
What you should bring to the first meeting
Bring three things: a list of your goals, a list of every account and balance, and your most recent tax return. A fee-only fiduciary will use those three to model your situation in the first hour. If they instead push a product before reading any of your numbers, leave.