Another reason: cognitive decline as you age. You can make some big mistakes before it becomes obvious to those around you that your capacities are not what they were. Even if your family catches on and makes changes before damage is done, the situation is much easier if there are trusted legal and financial people in the picture who are already familiar with your situation and can carry on for your POA/trustee rather than having the job of managing your finances suddenly fall on a family member. Transitioning from DIY to supplementing with advice around retirement age can be a gift to your family as well as yourself. Also best done while you are still sharp enough to make a good choice of advisor and have some years of keeping an eye on their work, since susceptibility to scams also increases with age.
I’ve always been comfortable managing my own money. But I decided to get a financial advisor several years ago because I wanted someone with tools and experience to be an unbiased third-party to help me puzzle through various decisions. I go in every six months with a specific decision or two that I’m grappling with. It has been valuable.
One suggestion for anyone considering it: they’re not all the same, so choose carefully. They must be competent, of course, but they also need to share your values.
There are many more good reasons to work with a flat fee or hourly advice only +/- wealth/portfolio management at the right price. I DIYed for 10 years after outsourcing my money and for good reason. Accumulation is imminently DIYable and cost efficient. Decumulation is another animal. In addition to your reasons, I just didn’t want to worry about money management any more and preferred to focus on life maximization. Juggling all the interrelated balls after retirement in my 60’s and 70’ did not seem appealing. Blind spots abound. Would you take care of your own physical health?
Spot on. Investment selection is rarely where a great advisor earns their fee. The real value lives in the roles you've identified: behavioral guardrail, decumulation strategist, family continuity planner. To that list I'd add: consultant, mentor, motivator, and occasional therapist.
The best advisors don't manage your money. They help manage your relationship with your money. That's a very different, a far more valuable job.
Another reason: cognitive decline as you age. You can make some big mistakes before it becomes obvious to those around you that your capacities are not what they were. Even if your family catches on and makes changes before damage is done, the situation is much easier if there are trusted legal and financial people in the picture who are already familiar with your situation and can carry on for your POA/trustee rather than having the job of managing your finances suddenly fall on a family member. Transitioning from DIY to supplementing with advice around retirement age can be a gift to your family as well as yourself. Also best done while you are still sharp enough to make a good choice of advisor and have some years of keeping an eye on their work, since susceptibility to scams also increases with age.
I’ve always been comfortable managing my own money. But I decided to get a financial advisor several years ago because I wanted someone with tools and experience to be an unbiased third-party to help me puzzle through various decisions. I go in every six months with a specific decision or two that I’m grappling with. It has been valuable.
One suggestion for anyone considering it: they’re not all the same, so choose carefully. They must be competent, of course, but they also need to share your values.
There are many more good reasons to work with a flat fee or hourly advice only +/- wealth/portfolio management at the right price. I DIYed for 10 years after outsourcing my money and for good reason. Accumulation is imminently DIYable and cost efficient. Decumulation is another animal. In addition to your reasons, I just didn’t want to worry about money management any more and preferred to focus on life maximization. Juggling all the interrelated balls after retirement in my 60’s and 70’ did not seem appealing. Blind spots abound. Would you take care of your own physical health?
Spot on. Investment selection is rarely where a great advisor earns their fee. The real value lives in the roles you've identified: behavioral guardrail, decumulation strategist, family continuity planner. To that list I'd add: consultant, mentor, motivator, and occasional therapist.
The best advisors don't manage your money. They help manage your relationship with your money. That's a very different, a far more valuable job.