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How To Decide When You Need Expert Investment Advice

How To Decide When You Need Expert Investment Advice

Investing can be confusing, no matter how much experience with it one may have. There are certainly times when hiring an expert for financial advice is necessary. So, how to decide when you need expert investment advice? Read on to see what our the experts we spoke to had to say!

When Affairs are Complex, or In-Depth

Jack Kelly, CEO and Founder of Trusted Gifts, says: 

“So, you have some money to invest and are wondering whether you should hire an investment advisor or do it yourself. The answer depends on who you ask. If you ask an investment advisor, they will almost certainly tell you that you need one.

If you ask your DIY friend who invests in the market and has doubled his money in two years, he’ll tell you to avoid the fees and do it yourself.

How To Decide When You Need Expert Investment Advice

However, there are individuals who are well suited to managing their own finances. To determine which is best for you, consider the following five factors:

1- How complicated are your financial affairs?

Are you handling more complicated issues like inherited stock, margin trading, and retirement distribution strategies? Do you anticipate that the birth of a child, divorce, or illness will complicate your situation?

The greater the complexity, the greater the need for a professional investment advisor.

2- What is your financial capacity?

If you have a small portfolio, you won’t want to spread it too thin across multiple assets, and you probably won’t want to allocate a percentage to fees, you may be a good candidate for index fund investing, either on your own or with the assistance of an hourly planner.

With increased wealth comes increased investment options and complexity, as well as an increased need for an investment advisor.

3- Do you require in-depth financial planning?

If you require the services of a financial partner who will provide comprehensive financial planning in all areas and at all times, the fee is well worth it.

If all you want to do is throw some money into the market and see what happens, hourly is the way to go.

How To Decide When You Need Expert Investment Advice

4- How complex and interested are you?

To be your own money manager, you must have a basic understanding of finances and the market. It’s also critical that you enjoy it because you’ll be working on your portfolio for a long time. So be realistic.

FINRA (Financial Industry Regulatory Authority) has an abundance of helpful financial tools and quizzes. If you want to manage your own finances, browse this site.

If all of sudden you realize four hours have blown by and you’re still knee-deep in their ‘fund analyzer,’ then investing may be for you.

5- What are your expectations? 

If an investment advisor tells you they have the secret to beating the market, you will probably be disappointed.

The efficient market hypothesis (EMH) is an investment theory that states it is impossible to “beat the market” because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information.

Few investors, professional or amateur, can consistently outperform the stock market averages. That being said, a good advisor will more than likely get better returns over time than an amateur. Just don’t expect your money to double overnight.

And if it does, please read this SEC article on Ponzi schemes.”

When a Significant Amount of Moeny is Involved

John Brown from GetCash.com says:  

Generally speaking, people should consider seeking an investment expert’s help if they have saved up a significant amount of money, such as 20% of their annual income.

This is particularly important if you have no idea where or how to invest your money. 

For many people, the idea of investing can be daunting. There are so many different options, and it can be hard to know where to start.

How To Decide When You Need Expert Investment Advice

A good advisor will take the time to understand your goals and risk tolerance before making any investment recommendations. They can also provide valuable guidance when it comes to choosing individual investments or selecting a portfolio that’s right for you. 

Additionally, if you don’t want to monitor your investments constantly, an investment expert may be worth a try.

Lastly, if you’re a conservative investor, you might need the help of an investment advisor to help you build a conservative portfolio and invest your money according to your risk profile.”

When Looking to Save Money on Taxes

Johannes, Founder & CEO at Financer.com, says:

” I’ll be giving 3 different scenarios, and people fitting the bill should definitely consider an investment expert.

Complex/ Unorthodox financial situations If investors are facing complex financial situations where they have to pay multiple mortgages loans, manage business & personal financials as a biz owner or transfer some of their wills to a divorced partner, then in these cases consulting an investment advisor can be benefitting so that you’re staying on the right track.

If the value of your portfolio exceeds $1 Million, then you should definitely consider hiring an investment expert who can help you systematically manage your investments to provide the greatest results.

Assuming you’re a super busy business owner or a c-suite exec, then you should definitely leave this large chunk of money for investment experts to handle.

Investment experts are often great at helping investors save tax by rebalancing their portfolios. They often put a hefty portion of investments in Government bonds and T-bills where tax exemptions are allowed by the government.

Though a lower rate of return, the safety and tax-saving benefit cannot be ruled out.”

How To Decide When You Need Expert Investment Advice

Ask Yourself a Few Basic Questions First

 Eric Jones, CEO at Couture Candy, explains:  

“To decide whether you need help from an investment expert, you must ask yourself the following questions:

1- Are Your Finances Complicated?

The more complex your finances are, the more you are likely to get help from a professional investment adviser. 

2- How Much Money Do You Want to Invest?

With increased wealth comes increased investing possibilities and complexity, as well as an increased need for an investment advisor. 

How To Decide When You Need Expert Investment Advice

3- Do You Require In-Depth Financial Planning?

Do you need someone to convince you to purchase the Hyundai instead of the Range Rover? Want to know what kind of life insurance you need, or if you should put your bonus into a 529 or retirement account?

What if the market falls as it did in 2007? Can you resist the temptation to sell everything if your portfolio loses half its value? It is when a professional comes in handy.

4- What Do You Expect from The Market?

It is not possible to “beat the market” since existing share prices always incorporate and represent all relevant information due to stock market efficiency.

However, a skilled counselor will almost certainly outperform an amateur over time. Just don’t expect it to double your money overnight.”

When Buying Property or Starting a Business

Rei Shen, the founder of Success in Depth, tells us: 

“You should hire an investment advisor if you are considering buying property, planning a business startup, purchasing stocks, or planning to retire soon.

In these cases, you should act quickly, and you don’t wait until you saved enough money. So if you plan to start a family, buy a house, or buy a car, then you should hire an investment advisor right away to ensure you make the best of your situation.

How To Decide When You Need Expert Investment Advice

However, if the situation isn’t urgent, you can delay your decision about hiring an investment advisor. After all, you can always hire an investment advisor later once your finances stabilize.”

It’s Always a Good Idea to Get Advice!

Jeremy Goldman from Future Proof, says: 

“I believe it’s necessary to have a financial and/or investment expert all the time! This way, you can rest assured of every investment step you take. It reduces the circumstances of risks you take, making it most likely profitable steps when investing.”

Final Words: How To Decide When You Need Expert Investment Advice

There are a few things you will need to ask yourself when deciding whether to get expert investment advice. By following the suggestions from our experts, above, you should now have a good idea of when to consdider seeking professional financial advice!


Jessica is a published author and copywriter specializing in personal and investment finance. Her expertise is in financial product reviews and stock market education.