CFO Corner Week 37: Should You Get a Financial Advisor?
Financial advisors have an image problem. Ask most people what comes to mind and you'll hear "expensive," "salesy," or "not for me yet." This week's CFO Corner makes the case that a financial advisor belongs in the same category as every other coach or helper you already pay for without a second thought — and walks through exactly when it's time, and how to make sure you hire the right kind.
The Reframe
Think about how many other places in your life you pay for expertise and time: a personal trainer, childcare help, a house cleaner, a landscaper, a therapist. Nobody calls those a waste of money. A financial advisor belongs in that same category — and arguably belongs earlier on the list, because a solid financial plan is often what makes the rest of that list affordable in the first place.
The myth to clear up
"Paying for financial advice means I'm wasting money" isn't quite the right question. The real dividing line isn't advisor vs. no advisor — it's fiduciary vs. not. A fiduciary is legally required to act in your best interest. A non-fiduciary can legally recommend a product that's merely "suitable," even when a better, cheaper option exists, because it pays them more. Same job title, completely different incentive.
When it's actually time
The clearest signal: your money question has stopped being "which app should I use" and become "how do all these pieces fit together" — budgeting, investing, insurance, tax strategy, estate planning. Common triggers: a new job, a raise, buying a house, having kids, an inheritance, or starting a business.
The fiduciary question
Before anything else, ask: "Are you a fiduciary 100% of the time?" Some advisors are only held to that standard in parts of their business. You want someone who's a fiduciary across the board, not just in certain product lines.
How the fee models compare
AUM (assets under management): typically around 1% of your invested assets per year. On $250,000, that's $2,500 a year — and it grows as your balance grows, indefinitely.
Flat-fee, project-based: a one-time charge, often around $3,000, for a comprehensive plan covering budgeting through estate planning, with no ongoing percentage.
Flat monthly retainer: often $150–$250 a month, independent of your asset balance — frequently a better fit if you're still building wealth rather than managing an existing large portfolio.
No single model is automatically right — it depends on your stage and how much ongoing support you want. But most people only ever hear about the AUM model, so it's worth knowing the alternatives exist.
Where to look — and why you should meet more than one
Three fee-only, fiduciary-focused directories to start with: NAPFA.org, the XY Planning Network, and the Garrett Planning Network.
Whichever directory you use, don't stop at one name. You wouldn't hire the first babysitter you met to watch your kids — you'd meet a couple and see who actually fits. A financial advisor deserves the same process: set up intro calls with two or three, ask each one the same questions, and pay attention to how comfortable you feel being honest with them about money. Fit matters as much as credentials.
The honest caveats — and when you might not need one yet
This doesn't have to be a forever relationship — a single comprehensive plan, managed yourself afterward, is a completely valid path. And even a great fiduciary advisor isn't a substitute for your own financial literacy; they're a supplement to it. You're still the CFO of your own life.
It's also genuinely fine to not hire one right now. If you're already comfortable managing your own investments and your financial life is fairly simple — steady W-2 income, no business, no dependents or estate questions to plan around, mostly just contributing to a 401(k) or a couple of index funds — an advisor may not add much yet. They tend to earn their fee once complexity or stakes go up. If neither applies to you, it's okay to keep going it alone and revisit the question later.
This week's homework
Decide whether your current money question is a single answer or a whole plan, and whether your situation is complex enough to need outside help yet — that's your signal.
If it's time, pull two or three names from NAPFA.org, the XY Planning Network, or the Garrett Planning Network.
Set up intro calls with at least two of them — don't just go with the first one.
On each call, ask directly: "Are you a fiduciary 100% of the time?" and "How exactly are you compensated?"
